54
Consumer Information About Telephone-Related Issues Performance Information for Telephone Companies November 1998 m Away-From-Home Telephone Calls m Slamming m Telephone Information Services m Telephone Marketing Calls and Faxes m How and Where to File Complaints m FCC Consumer Complaint Statistics Scorecard Produced by the Federal Communications Commission Washington, D.C. Common Carrier Common Carrier Bureau • Enforcement and Industry Analysis Divisions Highlights of This Issue Scorecard FCC Form Number CCB-FS015

Common Carrier Scorecard - Federal Communications Commission (FCC

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Page 1: Common Carrier Scorecard - Federal Communications Commission (FCC

Consumer Information About Telephone-Related Issues Performance Information for Telephone Companies

November 1998

mmmmm Away-From-Home Telephone Callsmmmmm Slammingmmmmm Telephone Information Services

mmmmm Telephone Marketing Calls and Faxesmmmmm How and Where to File Complaintsmmmmm FCC Consumer Complaint Statistics

Scorecard Produced by the Federal Communications Commission bull Washington DC

Common Carrier

Common Carrier Bureau bull Enforcement and Industry Analysis Divisions

Highlights of This Issue

Score

card

FCC For

m N

umbe

r CCB-F

S015

Note on Selecting Hot Links
This document contains interactive links to other pages within this document and to related pages on the FCCs web site Links to other pages within this document are highlighted with yellow boxes while links to Internet pages are highlighted with blue boxes Click on the yellow link to display the related PDF page in your Acrobat Reader or on the blue link to display the related Internet page in your web browser Click on the double left arrow button on the Acrobat toolbar to return to the previous page

The Common Carrier Scorecard Reportsare Available Through

The Internet

Browse and download the Common Carrier Scorecard Reports from the WorldWide Web

November 1998 Scorecard ReporthttpwwwfccgovBureausCommon_CarrierReportsscore_card_98html

December 1997 Scorecard ReporthttpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

Fall 1996 Scorecard ReporthttpwwwfccgovBureausCommon_CarrierReportsscore_card_95html

Fax-on-Demand

Call the International Transcription Services Inc at (202) 857-3800 to pur-chase copies of the Scorecard

November 1998 Scorecard Report Select Document Number 6736

December 1997 Scorecard Report Select Document Number 6726

Fall 1996 Scorecard Report Select Document Number 6720

Call (202) 418-2830 Then select the document number for the ScorecardReport you want sent to your fax number

The FCCrsquos Contract Copier

1FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

About The Scorecard

cies and rules that govern thepractices of regulated companiesand protect the interests of con-sumers

The first section of the Scorecardprovides an in-depth look intooperator service providers howto avoid high rates for away-from-home calls and what ac-tions consumers can take if prob-lems occur

The second section includes in-formation about the actions theFCC has taken to protect consum-ers from slamming abusive tele-phone information service prac-tices and unwanted telephonemarketing calls and faxes

The third section of the Scorecardanalyzes 1997 consumer com-plaint and inquiry trends Dur-ing 1997 the Consumer Protec-tion Branch processed 18850consumer telephone calls and44035 written consumer com-plaints and inquiries

Kathie A KneffSpecial Advisor for ExternalCommunicationsEnforcement DivisionCommon Carrier Bureau

Craig StroupIndustry EconomistIndustry Analysis DivisionCommon Carrier Bureau

This fourth edition of the Com-mon Carrier Scorecard Reportwas prepared by the Enforcementand Industry Analysis Divisionsof the FCCrsquos Common CarrierBureau

During 1997 the top four catego-ries of telephone-related con-sumer complaints and inquiriesprocessed by the EnforcementDivisionrsquos Consumer ProtectionBranch were unauthorized con-versions of telephone service apractice known as ldquoslammingrdquo900 number pay-per-call andother types of information ser-vices operator service providersrsquorates and practices and unsolic-ited telephone marketing callsand faxes

Consumers contact the ConsumerProtection Branch to obtain infor-mation to resolve a complaint orto express their opinions on tele-communications issues FCC de-cision-makers review informationprovided by consumers and usethat information to develop poli-

The Scorecard provides consumer information about telephone-related issues and performanceinformation for individual telephone companies and for the common carrier industry as a wholeConsumers can use this information to make informed decisions about which companies andservices they want to use The common carrier industry can use this information to developsolutions to industry problems identified in consumer complaints

In absolute numbers the largestcompanies generally received themost written complaints Afteradjusting for company size thecomplaint indices for the largestcompanies were far below thecomplaint indices for some oftheir smaller competitors

The Scorecard also shows thatcompanies can significantly re-duce consumer complaints filedagainst them by dealing withvalid consumer complaintsquickly without ldquopassing thebuckrdquo providing more informa-tion about their services to con-sumers improving their customerservice programs and maintain-ing better billing and servicerecords

ScorecardCommon Carrier

2 COMMON CARRIER SCORECARD REPORT

Contents

12-22 A Quick Look at Slam-ming Telephone InformationServices and Unsolicited Tele-phone Marketing Calls andFaxes

13 A Quick Look at Slamming

15 A Quick Look at 900 Num-ber Pay-Per-Call and Other Types ofTelephone Information Services

19 A Quick Look at UnsolicitedTelephone Marketing Calls and Faxes

3-11 An In-Depth Look atOperator Service Providers(OSPs)

3 You Donrsquot Need to Take aChance on High Rates for Away-From-Home Telephone Calls

4 Information You ShouldKnow About Calls Placed from Pub-lic Telephones

4 Federal Law and the FCCrsquosOSP Rules

6 Collect and Credit CardCalls Placed from Mexico

7 How to File OSP Service andRate Complaints

T S REND

23-33 Trends in ConsumerComplaints and Inquiries

24 Analysis of Consumer Com-plaints

25 Consumer Complaints andInquiries Reach the FCC in SeveralWays

26 Consumers Call the Con-sumer Protection Branch of the Com-mon Carrier Bureaursquos EnforcementDivision for Information on a Vari-ety of Issues

27 Issues Raised in WrittenConsumer Complaints and Inquiries

28-33 Companies Served MoreThan 50 Complaints During 1997

34-46 Appendices

47-48 Guide to Abbreviations

49-51 Consumer Information

3FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

An In-depth Look At

ScorecardCommon Carrier

Operator Service Providers (OSPs) provide long distance service -- and insome cases local telephone services -- from pay telephones or telephoneslocated in public places such as hotels motels and hospitals

Operator Service Providers

chance onhigh ratesfor away-from-hometelephonecalls

You donrsquotneed to

take a

The FCCrsquos rules ensure that in-terstate OSP services are pro-vided to consumers in a fair andreasonable manner and that con-sumers have the opportunity tomake informed choices in mak-ing interstate calls from publictelephones served by OSPs

You have the right to select thelong distance company you wantto use for away-from-home calls

A number of long distance com-panies compete for your away-from-home telephone business

Use your buying power wiselyBefore you leave home -- shoparound to find the best deal forthe types of calls you plan tomake from public telephone calls

The long distance telephone com-pany you selected to provide ser-

OPERATOR SERVICE PROVIDERS

4 COMMON CARRIER SCORECARD REPORT

Calls handled by an OSP will bebilled at the OSPrsquos rates not therates of the company that issuedthe calling card -- unless the OSPissued the card

No matter what type of callingcard you use the only way to besure your call will be billedthrough your chosen long dis-tance company is to follow thatcompanyrsquos instructions for plac-ing calls from public telephones

Use YourBuyingPowerWisely

Information You Should KnowAbout Calls Placed From Pub-lic Telephones

The OSP serving a public tele-phone generally will handle a callif ldquo0rdquo is dialed before dialing anyother number

Unless you use coins to pay for acall the OSP will require you tocharge the call to a calling cardcall collect or bill the call to athird party

The OSP most likely will be ableto bill you for a call at its rates ifyou use a calling card number thatincludes your local telephonenumber

Federal Law and the FCCrsquosOSP Rules

In 1990 Congress enacted theTelephone Operator ConsumerServices Improvement Act of1990 -- also called TOCSIACongress enacted this federal lawto respond to consumersrsquo con-cerns about high charges foraway-from-home calls placedfrom public telephones and theunfair and abusive practices usedby some OSPs

The FCCrsquos rules implementingthe provisions of this federal lawensure that interstate OSP ser-vices are provided to consumersin a fair and reasonable mannerand that consumers have the op-portunity to make informed

Be Phone WiseIt Pays to Know the Rules

The following FCC consumerprotection rules also apply toOSP services

You have the right to placecalls from a public telephonethrough the long distance com-pany you want to use by dialingan access code -- such as an 800number a local number that be-gins with 950 or a seven-digit ac-cess number known as a 101-XXXX or a 10-10-XXX number

Federal law and the FCCrsquos OSPrules prohibit blocking of 800 or950 access to long distance com-panies from public telephones101-XXXX or 10-10-XXX ac-cess must also be unblocked

OSPs are required to immedi-ately connect emergency calls tothe appropriate emergency ser-vice

OSPs may not bill for unan-swered calls in areas where equalaccess (1+) service is availablenor may the OSP knowingly billfor unanswered calls where equalaccess is not available

Sometimes an unanswered callwill register as a billed call dueto the equipment used by localtelephone companies in areaswhere equal access is not avail-able

vice for your home or businesstelephone line may have a specialcalling plan for away-from-homecalls You should comparisonshop with other companies to getthe best rates for the types of callsyou plan to place away fromhome

Be sure to ask each company youcontact to explain all charges forcalls placed from public tele-phones -- such as charges for us-ing a calling card charges forusing an operator any minimummonthly charges for special call-ing plans and the per-minutecharges

Once you select a company tohandle your away-from-homecalls be sure to ask that companyfor instructions on how to placecalls through that company frompublic telephones

choices in making interstate callsfrom public telephones

AN IN-DEPTH LOOK

5FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

ConsumerWatchWord

The FCCrsquos rules require eachpublic telephone provider to postthe following information anddisclosures on or near each pub-lic telephone in plain view ofconsumers

The name address and toll-free number of the OSP provid-ing the service for that telephone

Rates for all operator-assistedcalls are available upon requestand

Consumers have a right to ob-tain access to the interstate longdistance company of their choiceand may call that company usingthat public telephone

The FCCrsquos rules require eachOSP to identify itself at the be-ginning of a call and before anycharges are incurred

Beginning July 1 l998 mostOSPs must also orally notify call-ers of their right to obtain ratequotations for interstate calls be-fore a call is connected and billed

You will be able to find out thetotal price of a telephone call --including any surcharges -- bysimply pressing a button such asthe pound key or staying on theline

The price disclosure requirementwill give you the opportunity tohang up on high rates and to ldquodialaroundrdquo OSPs by following yourchosen long distance companyrsquosinstructions for placing calls frompublic telephones

Remember -- you have the rightto select the long distance com-pany you want to use for away-from-home calls

Before you leave home be sureto call the company you want touse for away-from-home callsand obtain instructions on how toplace calls through that companyfrom public telephones

LookLook at the printed informa-tion on or near the telephone

Stop before making a call Listen after you dial the num-ber to determine which OSPis handling the call

Stop Look

OPERATOR SERVICE PROVIDERS

Listen

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 2: Common Carrier Scorecard - Federal Communications Commission (FCC

The Common Carrier Scorecard Reportsare Available Through

The Internet

Browse and download the Common Carrier Scorecard Reports from the WorldWide Web

November 1998 Scorecard ReporthttpwwwfccgovBureausCommon_CarrierReportsscore_card_98html

December 1997 Scorecard ReporthttpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

Fall 1996 Scorecard ReporthttpwwwfccgovBureausCommon_CarrierReportsscore_card_95html

Fax-on-Demand

Call the International Transcription Services Inc at (202) 857-3800 to pur-chase copies of the Scorecard

November 1998 Scorecard Report Select Document Number 6736

December 1997 Scorecard Report Select Document Number 6726

Fall 1996 Scorecard Report Select Document Number 6720

Call (202) 418-2830 Then select the document number for the ScorecardReport you want sent to your fax number

The FCCrsquos Contract Copier

1FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

About The Scorecard

cies and rules that govern thepractices of regulated companiesand protect the interests of con-sumers

The first section of the Scorecardprovides an in-depth look intooperator service providers howto avoid high rates for away-from-home calls and what ac-tions consumers can take if prob-lems occur

The second section includes in-formation about the actions theFCC has taken to protect consum-ers from slamming abusive tele-phone information service prac-tices and unwanted telephonemarketing calls and faxes

The third section of the Scorecardanalyzes 1997 consumer com-plaint and inquiry trends Dur-ing 1997 the Consumer Protec-tion Branch processed 18850consumer telephone calls and44035 written consumer com-plaints and inquiries

Kathie A KneffSpecial Advisor for ExternalCommunicationsEnforcement DivisionCommon Carrier Bureau

Craig StroupIndustry EconomistIndustry Analysis DivisionCommon Carrier Bureau

This fourth edition of the Com-mon Carrier Scorecard Reportwas prepared by the Enforcementand Industry Analysis Divisionsof the FCCrsquos Common CarrierBureau

During 1997 the top four catego-ries of telephone-related con-sumer complaints and inquiriesprocessed by the EnforcementDivisionrsquos Consumer ProtectionBranch were unauthorized con-versions of telephone service apractice known as ldquoslammingrdquo900 number pay-per-call andother types of information ser-vices operator service providersrsquorates and practices and unsolic-ited telephone marketing callsand faxes

Consumers contact the ConsumerProtection Branch to obtain infor-mation to resolve a complaint orto express their opinions on tele-communications issues FCC de-cision-makers review informationprovided by consumers and usethat information to develop poli-

The Scorecard provides consumer information about telephone-related issues and performanceinformation for individual telephone companies and for the common carrier industry as a wholeConsumers can use this information to make informed decisions about which companies andservices they want to use The common carrier industry can use this information to developsolutions to industry problems identified in consumer complaints

In absolute numbers the largestcompanies generally received themost written complaints Afteradjusting for company size thecomplaint indices for the largestcompanies were far below thecomplaint indices for some oftheir smaller competitors

The Scorecard also shows thatcompanies can significantly re-duce consumer complaints filedagainst them by dealing withvalid consumer complaintsquickly without ldquopassing thebuckrdquo providing more informa-tion about their services to con-sumers improving their customerservice programs and maintain-ing better billing and servicerecords

ScorecardCommon Carrier

2 COMMON CARRIER SCORECARD REPORT

Contents

12-22 A Quick Look at Slam-ming Telephone InformationServices and Unsolicited Tele-phone Marketing Calls andFaxes

13 A Quick Look at Slamming

15 A Quick Look at 900 Num-ber Pay-Per-Call and Other Types ofTelephone Information Services

19 A Quick Look at UnsolicitedTelephone Marketing Calls and Faxes

3-11 An In-Depth Look atOperator Service Providers(OSPs)

3 You Donrsquot Need to Take aChance on High Rates for Away-From-Home Telephone Calls

4 Information You ShouldKnow About Calls Placed from Pub-lic Telephones

4 Federal Law and the FCCrsquosOSP Rules

6 Collect and Credit CardCalls Placed from Mexico

7 How to File OSP Service andRate Complaints

T S REND

23-33 Trends in ConsumerComplaints and Inquiries

24 Analysis of Consumer Com-plaints

25 Consumer Complaints andInquiries Reach the FCC in SeveralWays

26 Consumers Call the Con-sumer Protection Branch of the Com-mon Carrier Bureaursquos EnforcementDivision for Information on a Vari-ety of Issues

27 Issues Raised in WrittenConsumer Complaints and Inquiries

28-33 Companies Served MoreThan 50 Complaints During 1997

34-46 Appendices

47-48 Guide to Abbreviations

49-51 Consumer Information

3FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

An In-depth Look At

ScorecardCommon Carrier

Operator Service Providers (OSPs) provide long distance service -- and insome cases local telephone services -- from pay telephones or telephoneslocated in public places such as hotels motels and hospitals

Operator Service Providers

chance onhigh ratesfor away-from-hometelephonecalls

You donrsquotneed to

take a

The FCCrsquos rules ensure that in-terstate OSP services are pro-vided to consumers in a fair andreasonable manner and that con-sumers have the opportunity tomake informed choices in mak-ing interstate calls from publictelephones served by OSPs

You have the right to select thelong distance company you wantto use for away-from-home calls

A number of long distance com-panies compete for your away-from-home telephone business

Use your buying power wiselyBefore you leave home -- shoparound to find the best deal forthe types of calls you plan tomake from public telephone calls

The long distance telephone com-pany you selected to provide ser-

OPERATOR SERVICE PROVIDERS

4 COMMON CARRIER SCORECARD REPORT

Calls handled by an OSP will bebilled at the OSPrsquos rates not therates of the company that issuedthe calling card -- unless the OSPissued the card

No matter what type of callingcard you use the only way to besure your call will be billedthrough your chosen long dis-tance company is to follow thatcompanyrsquos instructions for plac-ing calls from public telephones

Use YourBuyingPowerWisely

Information You Should KnowAbout Calls Placed From Pub-lic Telephones

The OSP serving a public tele-phone generally will handle a callif ldquo0rdquo is dialed before dialing anyother number

Unless you use coins to pay for acall the OSP will require you tocharge the call to a calling cardcall collect or bill the call to athird party

The OSP most likely will be ableto bill you for a call at its rates ifyou use a calling card number thatincludes your local telephonenumber

Federal Law and the FCCrsquosOSP Rules

In 1990 Congress enacted theTelephone Operator ConsumerServices Improvement Act of1990 -- also called TOCSIACongress enacted this federal lawto respond to consumersrsquo con-cerns about high charges foraway-from-home calls placedfrom public telephones and theunfair and abusive practices usedby some OSPs

The FCCrsquos rules implementingthe provisions of this federal lawensure that interstate OSP ser-vices are provided to consumersin a fair and reasonable mannerand that consumers have the op-portunity to make informed

Be Phone WiseIt Pays to Know the Rules

The following FCC consumerprotection rules also apply toOSP services

You have the right to placecalls from a public telephonethrough the long distance com-pany you want to use by dialingan access code -- such as an 800number a local number that be-gins with 950 or a seven-digit ac-cess number known as a 101-XXXX or a 10-10-XXX number

Federal law and the FCCrsquos OSPrules prohibit blocking of 800 or950 access to long distance com-panies from public telephones101-XXXX or 10-10-XXX ac-cess must also be unblocked

OSPs are required to immedi-ately connect emergency calls tothe appropriate emergency ser-vice

OSPs may not bill for unan-swered calls in areas where equalaccess (1+) service is availablenor may the OSP knowingly billfor unanswered calls where equalaccess is not available

Sometimes an unanswered callwill register as a billed call dueto the equipment used by localtelephone companies in areaswhere equal access is not avail-able

vice for your home or businesstelephone line may have a specialcalling plan for away-from-homecalls You should comparisonshop with other companies to getthe best rates for the types of callsyou plan to place away fromhome

Be sure to ask each company youcontact to explain all charges forcalls placed from public tele-phones -- such as charges for us-ing a calling card charges forusing an operator any minimummonthly charges for special call-ing plans and the per-minutecharges

Once you select a company tohandle your away-from-homecalls be sure to ask that companyfor instructions on how to placecalls through that company frompublic telephones

choices in making interstate callsfrom public telephones

AN IN-DEPTH LOOK

5FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

ConsumerWatchWord

The FCCrsquos rules require eachpublic telephone provider to postthe following information anddisclosures on or near each pub-lic telephone in plain view ofconsumers

The name address and toll-free number of the OSP provid-ing the service for that telephone

Rates for all operator-assistedcalls are available upon requestand

Consumers have a right to ob-tain access to the interstate longdistance company of their choiceand may call that company usingthat public telephone

The FCCrsquos rules require eachOSP to identify itself at the be-ginning of a call and before anycharges are incurred

Beginning July 1 l998 mostOSPs must also orally notify call-ers of their right to obtain ratequotations for interstate calls be-fore a call is connected and billed

You will be able to find out thetotal price of a telephone call --including any surcharges -- bysimply pressing a button such asthe pound key or staying on theline

The price disclosure requirementwill give you the opportunity tohang up on high rates and to ldquodialaroundrdquo OSPs by following yourchosen long distance companyrsquosinstructions for placing calls frompublic telephones

Remember -- you have the rightto select the long distance com-pany you want to use for away-from-home calls

Before you leave home be sureto call the company you want touse for away-from-home callsand obtain instructions on how toplace calls through that companyfrom public telephones

LookLook at the printed informa-tion on or near the telephone

Stop before making a call Listen after you dial the num-ber to determine which OSPis handling the call

Stop Look

OPERATOR SERVICE PROVIDERS

Listen

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 3: Common Carrier Scorecard - Federal Communications Commission (FCC

1FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

About The Scorecard

cies and rules that govern thepractices of regulated companiesand protect the interests of con-sumers

The first section of the Scorecardprovides an in-depth look intooperator service providers howto avoid high rates for away-from-home calls and what ac-tions consumers can take if prob-lems occur

The second section includes in-formation about the actions theFCC has taken to protect consum-ers from slamming abusive tele-phone information service prac-tices and unwanted telephonemarketing calls and faxes

The third section of the Scorecardanalyzes 1997 consumer com-plaint and inquiry trends Dur-ing 1997 the Consumer Protec-tion Branch processed 18850consumer telephone calls and44035 written consumer com-plaints and inquiries

Kathie A KneffSpecial Advisor for ExternalCommunicationsEnforcement DivisionCommon Carrier Bureau

Craig StroupIndustry EconomistIndustry Analysis DivisionCommon Carrier Bureau

This fourth edition of the Com-mon Carrier Scorecard Reportwas prepared by the Enforcementand Industry Analysis Divisionsof the FCCrsquos Common CarrierBureau

During 1997 the top four catego-ries of telephone-related con-sumer complaints and inquiriesprocessed by the EnforcementDivisionrsquos Consumer ProtectionBranch were unauthorized con-versions of telephone service apractice known as ldquoslammingrdquo900 number pay-per-call andother types of information ser-vices operator service providersrsquorates and practices and unsolic-ited telephone marketing callsand faxes

Consumers contact the ConsumerProtection Branch to obtain infor-mation to resolve a complaint orto express their opinions on tele-communications issues FCC de-cision-makers review informationprovided by consumers and usethat information to develop poli-

The Scorecard provides consumer information about telephone-related issues and performanceinformation for individual telephone companies and for the common carrier industry as a wholeConsumers can use this information to make informed decisions about which companies andservices they want to use The common carrier industry can use this information to developsolutions to industry problems identified in consumer complaints

In absolute numbers the largestcompanies generally received themost written complaints Afteradjusting for company size thecomplaint indices for the largestcompanies were far below thecomplaint indices for some oftheir smaller competitors

The Scorecard also shows thatcompanies can significantly re-duce consumer complaints filedagainst them by dealing withvalid consumer complaintsquickly without ldquopassing thebuckrdquo providing more informa-tion about their services to con-sumers improving their customerservice programs and maintain-ing better billing and servicerecords

ScorecardCommon Carrier

2 COMMON CARRIER SCORECARD REPORT

Contents

12-22 A Quick Look at Slam-ming Telephone InformationServices and Unsolicited Tele-phone Marketing Calls andFaxes

13 A Quick Look at Slamming

15 A Quick Look at 900 Num-ber Pay-Per-Call and Other Types ofTelephone Information Services

19 A Quick Look at UnsolicitedTelephone Marketing Calls and Faxes

3-11 An In-Depth Look atOperator Service Providers(OSPs)

3 You Donrsquot Need to Take aChance on High Rates for Away-From-Home Telephone Calls

4 Information You ShouldKnow About Calls Placed from Pub-lic Telephones

4 Federal Law and the FCCrsquosOSP Rules

6 Collect and Credit CardCalls Placed from Mexico

7 How to File OSP Service andRate Complaints

T S REND

23-33 Trends in ConsumerComplaints and Inquiries

24 Analysis of Consumer Com-plaints

25 Consumer Complaints andInquiries Reach the FCC in SeveralWays

26 Consumers Call the Con-sumer Protection Branch of the Com-mon Carrier Bureaursquos EnforcementDivision for Information on a Vari-ety of Issues

27 Issues Raised in WrittenConsumer Complaints and Inquiries

28-33 Companies Served MoreThan 50 Complaints During 1997

34-46 Appendices

47-48 Guide to Abbreviations

49-51 Consumer Information

3FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

An In-depth Look At

ScorecardCommon Carrier

Operator Service Providers (OSPs) provide long distance service -- and insome cases local telephone services -- from pay telephones or telephoneslocated in public places such as hotels motels and hospitals

Operator Service Providers

chance onhigh ratesfor away-from-hometelephonecalls

You donrsquotneed to

take a

The FCCrsquos rules ensure that in-terstate OSP services are pro-vided to consumers in a fair andreasonable manner and that con-sumers have the opportunity tomake informed choices in mak-ing interstate calls from publictelephones served by OSPs

You have the right to select thelong distance company you wantto use for away-from-home calls

A number of long distance com-panies compete for your away-from-home telephone business

Use your buying power wiselyBefore you leave home -- shoparound to find the best deal forthe types of calls you plan tomake from public telephone calls

The long distance telephone com-pany you selected to provide ser-

OPERATOR SERVICE PROVIDERS

4 COMMON CARRIER SCORECARD REPORT

Calls handled by an OSP will bebilled at the OSPrsquos rates not therates of the company that issuedthe calling card -- unless the OSPissued the card

No matter what type of callingcard you use the only way to besure your call will be billedthrough your chosen long dis-tance company is to follow thatcompanyrsquos instructions for plac-ing calls from public telephones

Use YourBuyingPowerWisely

Information You Should KnowAbout Calls Placed From Pub-lic Telephones

The OSP serving a public tele-phone generally will handle a callif ldquo0rdquo is dialed before dialing anyother number

Unless you use coins to pay for acall the OSP will require you tocharge the call to a calling cardcall collect or bill the call to athird party

The OSP most likely will be ableto bill you for a call at its rates ifyou use a calling card number thatincludes your local telephonenumber

Federal Law and the FCCrsquosOSP Rules

In 1990 Congress enacted theTelephone Operator ConsumerServices Improvement Act of1990 -- also called TOCSIACongress enacted this federal lawto respond to consumersrsquo con-cerns about high charges foraway-from-home calls placedfrom public telephones and theunfair and abusive practices usedby some OSPs

The FCCrsquos rules implementingthe provisions of this federal lawensure that interstate OSP ser-vices are provided to consumersin a fair and reasonable mannerand that consumers have the op-portunity to make informed

Be Phone WiseIt Pays to Know the Rules

The following FCC consumerprotection rules also apply toOSP services

You have the right to placecalls from a public telephonethrough the long distance com-pany you want to use by dialingan access code -- such as an 800number a local number that be-gins with 950 or a seven-digit ac-cess number known as a 101-XXXX or a 10-10-XXX number

Federal law and the FCCrsquos OSPrules prohibit blocking of 800 or950 access to long distance com-panies from public telephones101-XXXX or 10-10-XXX ac-cess must also be unblocked

OSPs are required to immedi-ately connect emergency calls tothe appropriate emergency ser-vice

OSPs may not bill for unan-swered calls in areas where equalaccess (1+) service is availablenor may the OSP knowingly billfor unanswered calls where equalaccess is not available

Sometimes an unanswered callwill register as a billed call dueto the equipment used by localtelephone companies in areaswhere equal access is not avail-able

vice for your home or businesstelephone line may have a specialcalling plan for away-from-homecalls You should comparisonshop with other companies to getthe best rates for the types of callsyou plan to place away fromhome

Be sure to ask each company youcontact to explain all charges forcalls placed from public tele-phones -- such as charges for us-ing a calling card charges forusing an operator any minimummonthly charges for special call-ing plans and the per-minutecharges

Once you select a company tohandle your away-from-homecalls be sure to ask that companyfor instructions on how to placecalls through that company frompublic telephones

choices in making interstate callsfrom public telephones

AN IN-DEPTH LOOK

5FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

ConsumerWatchWord

The FCCrsquos rules require eachpublic telephone provider to postthe following information anddisclosures on or near each pub-lic telephone in plain view ofconsumers

The name address and toll-free number of the OSP provid-ing the service for that telephone

Rates for all operator-assistedcalls are available upon requestand

Consumers have a right to ob-tain access to the interstate longdistance company of their choiceand may call that company usingthat public telephone

The FCCrsquos rules require eachOSP to identify itself at the be-ginning of a call and before anycharges are incurred

Beginning July 1 l998 mostOSPs must also orally notify call-ers of their right to obtain ratequotations for interstate calls be-fore a call is connected and billed

You will be able to find out thetotal price of a telephone call --including any surcharges -- bysimply pressing a button such asthe pound key or staying on theline

The price disclosure requirementwill give you the opportunity tohang up on high rates and to ldquodialaroundrdquo OSPs by following yourchosen long distance companyrsquosinstructions for placing calls frompublic telephones

Remember -- you have the rightto select the long distance com-pany you want to use for away-from-home calls

Before you leave home be sureto call the company you want touse for away-from-home callsand obtain instructions on how toplace calls through that companyfrom public telephones

LookLook at the printed informa-tion on or near the telephone

Stop before making a call Listen after you dial the num-ber to determine which OSPis handling the call

Stop Look

OPERATOR SERVICE PROVIDERS

Listen

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 4: Common Carrier Scorecard - Federal Communications Commission (FCC

2 COMMON CARRIER SCORECARD REPORT

Contents

12-22 A Quick Look at Slam-ming Telephone InformationServices and Unsolicited Tele-phone Marketing Calls andFaxes

13 A Quick Look at Slamming

15 A Quick Look at 900 Num-ber Pay-Per-Call and Other Types ofTelephone Information Services

19 A Quick Look at UnsolicitedTelephone Marketing Calls and Faxes

3-11 An In-Depth Look atOperator Service Providers(OSPs)

3 You Donrsquot Need to Take aChance on High Rates for Away-From-Home Telephone Calls

4 Information You ShouldKnow About Calls Placed from Pub-lic Telephones

4 Federal Law and the FCCrsquosOSP Rules

6 Collect and Credit CardCalls Placed from Mexico

7 How to File OSP Service andRate Complaints

T S REND

23-33 Trends in ConsumerComplaints and Inquiries

24 Analysis of Consumer Com-plaints

25 Consumer Complaints andInquiries Reach the FCC in SeveralWays

26 Consumers Call the Con-sumer Protection Branch of the Com-mon Carrier Bureaursquos EnforcementDivision for Information on a Vari-ety of Issues

27 Issues Raised in WrittenConsumer Complaints and Inquiries

28-33 Companies Served MoreThan 50 Complaints During 1997

34-46 Appendices

47-48 Guide to Abbreviations

49-51 Consumer Information

3FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

An In-depth Look At

ScorecardCommon Carrier

Operator Service Providers (OSPs) provide long distance service -- and insome cases local telephone services -- from pay telephones or telephoneslocated in public places such as hotels motels and hospitals

Operator Service Providers

chance onhigh ratesfor away-from-hometelephonecalls

You donrsquotneed to

take a

The FCCrsquos rules ensure that in-terstate OSP services are pro-vided to consumers in a fair andreasonable manner and that con-sumers have the opportunity tomake informed choices in mak-ing interstate calls from publictelephones served by OSPs

You have the right to select thelong distance company you wantto use for away-from-home calls

A number of long distance com-panies compete for your away-from-home telephone business

Use your buying power wiselyBefore you leave home -- shoparound to find the best deal forthe types of calls you plan tomake from public telephone calls

The long distance telephone com-pany you selected to provide ser-

OPERATOR SERVICE PROVIDERS

4 COMMON CARRIER SCORECARD REPORT

Calls handled by an OSP will bebilled at the OSPrsquos rates not therates of the company that issuedthe calling card -- unless the OSPissued the card

No matter what type of callingcard you use the only way to besure your call will be billedthrough your chosen long dis-tance company is to follow thatcompanyrsquos instructions for plac-ing calls from public telephones

Use YourBuyingPowerWisely

Information You Should KnowAbout Calls Placed From Pub-lic Telephones

The OSP serving a public tele-phone generally will handle a callif ldquo0rdquo is dialed before dialing anyother number

Unless you use coins to pay for acall the OSP will require you tocharge the call to a calling cardcall collect or bill the call to athird party

The OSP most likely will be ableto bill you for a call at its rates ifyou use a calling card number thatincludes your local telephonenumber

Federal Law and the FCCrsquosOSP Rules

In 1990 Congress enacted theTelephone Operator ConsumerServices Improvement Act of1990 -- also called TOCSIACongress enacted this federal lawto respond to consumersrsquo con-cerns about high charges foraway-from-home calls placedfrom public telephones and theunfair and abusive practices usedby some OSPs

The FCCrsquos rules implementingthe provisions of this federal lawensure that interstate OSP ser-vices are provided to consumersin a fair and reasonable mannerand that consumers have the op-portunity to make informed

Be Phone WiseIt Pays to Know the Rules

The following FCC consumerprotection rules also apply toOSP services

You have the right to placecalls from a public telephonethrough the long distance com-pany you want to use by dialingan access code -- such as an 800number a local number that be-gins with 950 or a seven-digit ac-cess number known as a 101-XXXX or a 10-10-XXX number

Federal law and the FCCrsquos OSPrules prohibit blocking of 800 or950 access to long distance com-panies from public telephones101-XXXX or 10-10-XXX ac-cess must also be unblocked

OSPs are required to immedi-ately connect emergency calls tothe appropriate emergency ser-vice

OSPs may not bill for unan-swered calls in areas where equalaccess (1+) service is availablenor may the OSP knowingly billfor unanswered calls where equalaccess is not available

Sometimes an unanswered callwill register as a billed call dueto the equipment used by localtelephone companies in areaswhere equal access is not avail-able

vice for your home or businesstelephone line may have a specialcalling plan for away-from-homecalls You should comparisonshop with other companies to getthe best rates for the types of callsyou plan to place away fromhome

Be sure to ask each company youcontact to explain all charges forcalls placed from public tele-phones -- such as charges for us-ing a calling card charges forusing an operator any minimummonthly charges for special call-ing plans and the per-minutecharges

Once you select a company tohandle your away-from-homecalls be sure to ask that companyfor instructions on how to placecalls through that company frompublic telephones

choices in making interstate callsfrom public telephones

AN IN-DEPTH LOOK

5FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

ConsumerWatchWord

The FCCrsquos rules require eachpublic telephone provider to postthe following information anddisclosures on or near each pub-lic telephone in plain view ofconsumers

The name address and toll-free number of the OSP provid-ing the service for that telephone

Rates for all operator-assistedcalls are available upon requestand

Consumers have a right to ob-tain access to the interstate longdistance company of their choiceand may call that company usingthat public telephone

The FCCrsquos rules require eachOSP to identify itself at the be-ginning of a call and before anycharges are incurred

Beginning July 1 l998 mostOSPs must also orally notify call-ers of their right to obtain ratequotations for interstate calls be-fore a call is connected and billed

You will be able to find out thetotal price of a telephone call --including any surcharges -- bysimply pressing a button such asthe pound key or staying on theline

The price disclosure requirementwill give you the opportunity tohang up on high rates and to ldquodialaroundrdquo OSPs by following yourchosen long distance companyrsquosinstructions for placing calls frompublic telephones

Remember -- you have the rightto select the long distance com-pany you want to use for away-from-home calls

Before you leave home be sureto call the company you want touse for away-from-home callsand obtain instructions on how toplace calls through that companyfrom public telephones

LookLook at the printed informa-tion on or near the telephone

Stop before making a call Listen after you dial the num-ber to determine which OSPis handling the call

Stop Look

OPERATOR SERVICE PROVIDERS

Listen

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 5: Common Carrier Scorecard - Federal Communications Commission (FCC

3FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

An In-depth Look At

ScorecardCommon Carrier

Operator Service Providers (OSPs) provide long distance service -- and insome cases local telephone services -- from pay telephones or telephoneslocated in public places such as hotels motels and hospitals

Operator Service Providers

chance onhigh ratesfor away-from-hometelephonecalls

You donrsquotneed to

take a

The FCCrsquos rules ensure that in-terstate OSP services are pro-vided to consumers in a fair andreasonable manner and that con-sumers have the opportunity tomake informed choices in mak-ing interstate calls from publictelephones served by OSPs

You have the right to select thelong distance company you wantto use for away-from-home calls

A number of long distance com-panies compete for your away-from-home telephone business

Use your buying power wiselyBefore you leave home -- shoparound to find the best deal forthe types of calls you plan tomake from public telephone calls

The long distance telephone com-pany you selected to provide ser-

OPERATOR SERVICE PROVIDERS

4 COMMON CARRIER SCORECARD REPORT

Calls handled by an OSP will bebilled at the OSPrsquos rates not therates of the company that issuedthe calling card -- unless the OSPissued the card

No matter what type of callingcard you use the only way to besure your call will be billedthrough your chosen long dis-tance company is to follow thatcompanyrsquos instructions for plac-ing calls from public telephones

Use YourBuyingPowerWisely

Information You Should KnowAbout Calls Placed From Pub-lic Telephones

The OSP serving a public tele-phone generally will handle a callif ldquo0rdquo is dialed before dialing anyother number

Unless you use coins to pay for acall the OSP will require you tocharge the call to a calling cardcall collect or bill the call to athird party

The OSP most likely will be ableto bill you for a call at its rates ifyou use a calling card number thatincludes your local telephonenumber

Federal Law and the FCCrsquosOSP Rules

In 1990 Congress enacted theTelephone Operator ConsumerServices Improvement Act of1990 -- also called TOCSIACongress enacted this federal lawto respond to consumersrsquo con-cerns about high charges foraway-from-home calls placedfrom public telephones and theunfair and abusive practices usedby some OSPs

The FCCrsquos rules implementingthe provisions of this federal lawensure that interstate OSP ser-vices are provided to consumersin a fair and reasonable mannerand that consumers have the op-portunity to make informed

Be Phone WiseIt Pays to Know the Rules

The following FCC consumerprotection rules also apply toOSP services

You have the right to placecalls from a public telephonethrough the long distance com-pany you want to use by dialingan access code -- such as an 800number a local number that be-gins with 950 or a seven-digit ac-cess number known as a 101-XXXX or a 10-10-XXX number

Federal law and the FCCrsquos OSPrules prohibit blocking of 800 or950 access to long distance com-panies from public telephones101-XXXX or 10-10-XXX ac-cess must also be unblocked

OSPs are required to immedi-ately connect emergency calls tothe appropriate emergency ser-vice

OSPs may not bill for unan-swered calls in areas where equalaccess (1+) service is availablenor may the OSP knowingly billfor unanswered calls where equalaccess is not available

Sometimes an unanswered callwill register as a billed call dueto the equipment used by localtelephone companies in areaswhere equal access is not avail-able

vice for your home or businesstelephone line may have a specialcalling plan for away-from-homecalls You should comparisonshop with other companies to getthe best rates for the types of callsyou plan to place away fromhome

Be sure to ask each company youcontact to explain all charges forcalls placed from public tele-phones -- such as charges for us-ing a calling card charges forusing an operator any minimummonthly charges for special call-ing plans and the per-minutecharges

Once you select a company tohandle your away-from-homecalls be sure to ask that companyfor instructions on how to placecalls through that company frompublic telephones

choices in making interstate callsfrom public telephones

AN IN-DEPTH LOOK

5FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

ConsumerWatchWord

The FCCrsquos rules require eachpublic telephone provider to postthe following information anddisclosures on or near each pub-lic telephone in plain view ofconsumers

The name address and toll-free number of the OSP provid-ing the service for that telephone

Rates for all operator-assistedcalls are available upon requestand

Consumers have a right to ob-tain access to the interstate longdistance company of their choiceand may call that company usingthat public telephone

The FCCrsquos rules require eachOSP to identify itself at the be-ginning of a call and before anycharges are incurred

Beginning July 1 l998 mostOSPs must also orally notify call-ers of their right to obtain ratequotations for interstate calls be-fore a call is connected and billed

You will be able to find out thetotal price of a telephone call --including any surcharges -- bysimply pressing a button such asthe pound key or staying on theline

The price disclosure requirementwill give you the opportunity tohang up on high rates and to ldquodialaroundrdquo OSPs by following yourchosen long distance companyrsquosinstructions for placing calls frompublic telephones

Remember -- you have the rightto select the long distance com-pany you want to use for away-from-home calls

Before you leave home be sureto call the company you want touse for away-from-home callsand obtain instructions on how toplace calls through that companyfrom public telephones

LookLook at the printed informa-tion on or near the telephone

Stop before making a call Listen after you dial the num-ber to determine which OSPis handling the call

Stop Look

OPERATOR SERVICE PROVIDERS

Listen

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 6: Common Carrier Scorecard - Federal Communications Commission (FCC

4 COMMON CARRIER SCORECARD REPORT

Calls handled by an OSP will bebilled at the OSPrsquos rates not therates of the company that issuedthe calling card -- unless the OSPissued the card

No matter what type of callingcard you use the only way to besure your call will be billedthrough your chosen long dis-tance company is to follow thatcompanyrsquos instructions for plac-ing calls from public telephones

Use YourBuyingPowerWisely

Information You Should KnowAbout Calls Placed From Pub-lic Telephones

The OSP serving a public tele-phone generally will handle a callif ldquo0rdquo is dialed before dialing anyother number

Unless you use coins to pay for acall the OSP will require you tocharge the call to a calling cardcall collect or bill the call to athird party

The OSP most likely will be ableto bill you for a call at its rates ifyou use a calling card number thatincludes your local telephonenumber

Federal Law and the FCCrsquosOSP Rules

In 1990 Congress enacted theTelephone Operator ConsumerServices Improvement Act of1990 -- also called TOCSIACongress enacted this federal lawto respond to consumersrsquo con-cerns about high charges foraway-from-home calls placedfrom public telephones and theunfair and abusive practices usedby some OSPs

The FCCrsquos rules implementingthe provisions of this federal lawensure that interstate OSP ser-vices are provided to consumersin a fair and reasonable mannerand that consumers have the op-portunity to make informed

Be Phone WiseIt Pays to Know the Rules

The following FCC consumerprotection rules also apply toOSP services

You have the right to placecalls from a public telephonethrough the long distance com-pany you want to use by dialingan access code -- such as an 800number a local number that be-gins with 950 or a seven-digit ac-cess number known as a 101-XXXX or a 10-10-XXX number

Federal law and the FCCrsquos OSPrules prohibit blocking of 800 or950 access to long distance com-panies from public telephones101-XXXX or 10-10-XXX ac-cess must also be unblocked

OSPs are required to immedi-ately connect emergency calls tothe appropriate emergency ser-vice

OSPs may not bill for unan-swered calls in areas where equalaccess (1+) service is availablenor may the OSP knowingly billfor unanswered calls where equalaccess is not available

Sometimes an unanswered callwill register as a billed call dueto the equipment used by localtelephone companies in areaswhere equal access is not avail-able

vice for your home or businesstelephone line may have a specialcalling plan for away-from-homecalls You should comparisonshop with other companies to getthe best rates for the types of callsyou plan to place away fromhome

Be sure to ask each company youcontact to explain all charges forcalls placed from public tele-phones -- such as charges for us-ing a calling card charges forusing an operator any minimummonthly charges for special call-ing plans and the per-minutecharges

Once you select a company tohandle your away-from-homecalls be sure to ask that companyfor instructions on how to placecalls through that company frompublic telephones

choices in making interstate callsfrom public telephones

AN IN-DEPTH LOOK

5FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

ConsumerWatchWord

The FCCrsquos rules require eachpublic telephone provider to postthe following information anddisclosures on or near each pub-lic telephone in plain view ofconsumers

The name address and toll-free number of the OSP provid-ing the service for that telephone

Rates for all operator-assistedcalls are available upon requestand

Consumers have a right to ob-tain access to the interstate longdistance company of their choiceand may call that company usingthat public telephone

The FCCrsquos rules require eachOSP to identify itself at the be-ginning of a call and before anycharges are incurred

Beginning July 1 l998 mostOSPs must also orally notify call-ers of their right to obtain ratequotations for interstate calls be-fore a call is connected and billed

You will be able to find out thetotal price of a telephone call --including any surcharges -- bysimply pressing a button such asthe pound key or staying on theline

The price disclosure requirementwill give you the opportunity tohang up on high rates and to ldquodialaroundrdquo OSPs by following yourchosen long distance companyrsquosinstructions for placing calls frompublic telephones

Remember -- you have the rightto select the long distance com-pany you want to use for away-from-home calls

Before you leave home be sureto call the company you want touse for away-from-home callsand obtain instructions on how toplace calls through that companyfrom public telephones

LookLook at the printed informa-tion on or near the telephone

Stop before making a call Listen after you dial the num-ber to determine which OSPis handling the call

Stop Look

OPERATOR SERVICE PROVIDERS

Listen

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

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cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 7: Common Carrier Scorecard - Federal Communications Commission (FCC

5FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

ConsumerWatchWord

The FCCrsquos rules require eachpublic telephone provider to postthe following information anddisclosures on or near each pub-lic telephone in plain view ofconsumers

The name address and toll-free number of the OSP provid-ing the service for that telephone

Rates for all operator-assistedcalls are available upon requestand

Consumers have a right to ob-tain access to the interstate longdistance company of their choiceand may call that company usingthat public telephone

The FCCrsquos rules require eachOSP to identify itself at the be-ginning of a call and before anycharges are incurred

Beginning July 1 l998 mostOSPs must also orally notify call-ers of their right to obtain ratequotations for interstate calls be-fore a call is connected and billed

You will be able to find out thetotal price of a telephone call --including any surcharges -- bysimply pressing a button such asthe pound key or staying on theline

The price disclosure requirementwill give you the opportunity tohang up on high rates and to ldquodialaroundrdquo OSPs by following yourchosen long distance companyrsquosinstructions for placing calls frompublic telephones

Remember -- you have the rightto select the long distance com-pany you want to use for away-from-home calls

Before you leave home be sureto call the company you want touse for away-from-home callsand obtain instructions on how toplace calls through that companyfrom public telephones

LookLook at the printed informa-tion on or near the telephone

Stop before making a call Listen after you dial the num-ber to determine which OSPis handling the call

Stop Look

OPERATOR SERVICE PROVIDERS

Listen

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 8: Common Carrier Scorecard - Federal Communications Commission (FCC

6 COMMON CARRIER SCORECARD REPORT

Only allow you to place credit card or collectcalls to the United States

Not allow you to contact your preferred tele-phone company by using your companyrsquos access codefor that country

Route all calls to a high-priced company thatdoes not disclose its rates

Collect and Credit CardCalls Placed from Mexico

The FCC has received complaints from consumers about the highrates charged for collect and credit card calls placed from certainpublic telephones located in Mexico and billed in the United States

The FCC is very concerned about the consumer issues raised in thesecomplaints However the FCCrsquos rules about posting consumer in-formation do not apply to public telephones located outside the UnitedStates -- and the FCC does not have jurisdiction over the companiesin Mexico that set the high rates

The United States telephone companies that complete the calls in theUnited States are subject to FCC regulation and also are subject tothe FCCrsquos complaint process

When the Consumer Protection Branch of the Common CarrierBureaursquos Enforcement Division receives consumer complaints aboutcalls placed from Mexico and billed in the United States it sends anldquoOfficial Notice of Informal Complaintrdquo to each United States com-pany involved with the complaint In most cases the Branch is ableto have the consumerrsquos bill for these calls adjusted to lower rates

Beginning July 1 l998 mostconsumers receiving collect callsfrom inmates in prisons jails andother correctional or similar in-stitutions will be able to obtainthe price of the call by simplypressing a button or staying on theline

OSPs providing operator servicesfor inmate-only telephones willbe required to orally notify theconsumer to be billed for aninmatersquos collect call of his or herright to obtain rate quotations be-fore the OSP connects and billsfor an interstate collect call

Consumers can then decidewhether or not they want to ac-cept the collect call Consumerscan also use the rate quotation in-formation to decide whether ornot they want to limit the lengthof the call

The FCCrsquos OSP Rules Donrsquot ProtectYou in Other Countries

Some public telephones inother countries may

$

AN IN-DEPTH LOOK

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 9: Common Carrier Scorecard - Federal Communications Commission (FCC

7FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints

T he first step in resolving acomplaint about OSP ser-vices or rates is to contact the

OSP that provided the service orthe company billing on behalf of theOSP The company you contactmay resolve your problem

If the company does not resolveyour problem you may file a com-plaint with a state public utilitycommission or the FCC

Your complaint about OSP services and rates or other typesof telephone-related issues must be filed with the FCC inwriting

This section of the Scorecard will guide you through the pro-cess of collecting the information you must include with yourcomplaint letter and provides the information you need toknow to file your complaint with the proper regulatory agency

How to File OSP Service and Rate

HOW TO FILE COMPLAINTS

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 10: Common Carrier Scorecard - Federal Communications Commission (FCC

8 COMMON CARRIER SCORECARD REPORT

Com

The check list on the next pageof this Scorecard lists the infor-mation you need to include inyour complaint letter

AN IN-DEPTH LOOK

There is no special form to fillout to file a complaint with theFCC You can simply send atyped or legibly printed letter inyour own words to

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop 1600A2Washington DC 20554

Save Time

Donrsquot delay action on your com-plaint by filing a complaint withthe wrong regulatory agency

If your complaint involves callsplaced from one location to an-other location within the samestate (intrastate calls) youshould address your complaint tothe public utility regulatory com-mission for the state where theservice was provided

This section of the Scorecardprovides the telephone numbersfor the state regulatory agencies

Filing a Complaint with theFCC

You may file a written complaintwith the FCC if your complaintconcerns problems you had withplacing calls from one state toanother state (interstate calls)

The Branch directs each com-pany to

send a letter to the consumerwho filed the complaint acknowl-edging receipt of the complaint

review all records and otherinformation relating to the com-plaint

file a written response to thecomplaint issues with the FCCUsually this response must befiled with the FCC within 30 daysfrom the date the Branch sent thecomplaint to the company and

The Consumer ProtectionBranch of the Common CarrierBureaursquos Enforcement Divisionassigns an ldquoICrdquo file number toeach consumerrsquos complaintThis file number is included incorrespondence responding tothe complaint

The Branch forwards complaintsabout services and rates regulatedby the FCC to each company in-volved with the complaint that iswithin the FCCrsquos jurisdiction orthat may in the staffrsquos view as-sist in the resolution of the com-plaint

send a copy of the responseto the consumer who filed thecomplaint

We ask consumers to

Understand that it takes timeto thoroughly review the issuesraised in individual complaintfiles

Wait at least 30 days after re-ceiving written responses fromthe company or companies in-volved with their complaint be-fore contacting the Branch forstatus infomation about theircomplaint file

Use their ldquoICrdquo complaint filenumber when contacting theBranch for status or other infor-mation about their complaint

After receiving the writtenresponses Branch staf fmembers review the com-plaint file

Appropriate FCC action will betaken if it appears that a companymay not be in compliance withfederal law FCC rules and deci-sions and industry practices

The Branch sends written notifi-cation to the consumer who filedthe complaint when the Branchcloses the complaint file

The FCCrsquos Procedures forProcessing Telephone-Related Consumer Complaints

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 11: Common Carrier Scorecard - Federal Communications Commission (FCC

9FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

Use this Check ListTo Collect the Information YouNeed to Include in YourComplaint Letter

The name address and telephone number for the hotel motelhospital or other entity where the public telephone was located

The number on the telephone and the telephone vendor (if identifiedon the telephone)

The exact numbers you dialed if you were unsuccessful in your at-tempts to place the call through your telephone company of choice

The name of the OSP providing long distance service for the tele-phone you used

You shouldalso includethis informationin complaintsabout OSPservices andrates

Your NameCompany Name (where appropriate)Street Address or Post Office BoxCity State Zip CodeDaytime Telephone Number (includ-ing area code)

A brief description of the complaint

The date(s) of the incidents involved with the complaint

The names and addresses of all the companies involved with the com-plaint

The names and telephone numbers of the company employees youtalked with in an effort to resolve the complaint and the dates youspoke with them

The action requested such as a credit or refund for disputed charges

Copies of the telephone bills listing the disputed charges The dis-puted charges should be circled on the copies of the bills

Copies of correspondence received from the companies involved withthe complaint and from state or federal agencies you contacted in aneffort to resolve the complaint

Copies of other documents involved with the complaint

Informationyou mustinclude in yourcomplaintletter abouttelephone-related issues

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 12: Common Carrier Scorecard - Federal Communications Commission (FCC

10 COMMON CARRIER SCORECARD REPORT

AN IN-DEPTH LOOK

Filing a Complaint with a State Regulatory Agency

A complaint about OSP callsplaced from one location to an-other location within the samestate (intrastate calls) should beaddressed to the public utilitycommission or state public ser-vice commission for the statewhere the service was provided

Herersquos a list of telephone num-bers for the state regulatory agen-cies

Please keep in mind that the tele-phone numbers for these agenciesmay change from time to time --especially as new area codes areadded

If you discover that a telephonenumber on this list is no longercorrect you can obtain the num-ber from

bull the government section of yourtelephone directory

bull your local or state consumeroffices

bull the FCCrsquos National Call Cen-ter toll-free at 1-888-225-5322

bull the Common Carrier BureaursquosIndustry Analysis Division at(202) 418-0940 or

bull the FCCrsquos Web Site athttpwwwfccgovccbconsumernewsstate_puchtml

Alabama (334) 242-5207 (334) 242-5211Alaska (907) 276-6222 (800) 390-2782Arizona (602) 542-2237 (602) 542-4251 (800) 222-7000Arkansas (501) 682-2051 (800) 482-1164California (415) 703-2782 (415) 703-1170 (800) 649-7570Colorado (303) 894-2000 (800) 456-0858Connecticut (860) 827-1553 (800) 382-4586Delaware (302) 739-4247District of Columbia (202) 626-5100Florida (850) 413-6344 (850) 413-6100 (800) 342-3552Georgia (404) 656-4501 (800) 282-5813Hawaii Hawaii (Big Island) (808) 586-2020 (800) 974-4000 Kauai (808) 274-3141 Maui (808) 984-2400 Molokai Lenai (800) 468-4644 (800) 468-4644Idaho (208) 334-0300 (800) 432-0369Illinois (312) 814-2850 (800) 524-0795Indiana (317) 232-2701 (312) 232-2712 (800) 851-4268Iowa (515) 281-5979

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Telephone Numbers for State Regulatory Agencies

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 13: Common Carrier Scorecard - Federal Communications Commission (FCC

11FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

HOW TO FILE COMPLAINTS

List of State Regulatory AgenciesTelephone Numbers for State Regulatory Agencies

Main Complaints In-State Telephone Telephone Toll-Free

State Number Number Number

Kansas (913) 271-3100 (913) 271-3140Kentucky (502) 564-3940Louisiana (504) 342-4427 (800) 256-2397Maine (207) 287-3831 (800) 452-4699Maryland (410) 767-8000Massachusetts (617) 305-3500Michigan (517) 334-6445 (800) 292-9555Minnesota (612) 296-7124 (612) 296-0406 (800) 657-3782Mississippi (601) 961-5400Missouri (573) 751-3234 (573) 751-4308Montana (406) 444-6199 (406) 444-6150 (800) 646-6150Nebraska (402) 471-3101Nevada (702) 687-6001New Hampshire (603) 271-2431New Jersey (973) 648-2026 (973) 648-4436 (800) 624-0241New Mexico (505) 827-4500 (505) 827-4496New York (518) 474-7080 (518) 474-5531 (800) 342-3377North Carolina (919) 733-4249 (919) 733-9277North Dakota (701) 328-2400Ohio (614) 466-3016 (800) 686-7826Oklahoma (405) 521-2211 (405) 521-2331 (800) 522-8154Oregon (503) 378-6611 (800) 522-2404Pennsylvania (717) 783-1740 (717) 783-5187 (800) 782-1110Puerto Rico (787) 756-1919Rhode Island (401) 277-3500South Carolina (803) 737-5100South Dakota (605) 773-3201 (800) 332-1782Tennessee (615) 741-2904Texas (512) 936-7000 (888) 782-8477Utah (801) 530-6716Vermont (802) 828-2358 (802) 828-2322 (800) 622-4496Virginia (804) 371-9967 (804) 371-9675 (800) 552-7945Washington (360) 753-6423 (360) 664-1120 (800) 562-6150West Virginia (304) 340-0300Wisconsin (608) 266-5481 (608) 266-2001 (800) 225-7729Wyoming (307) 777-7427

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 14: Common Carrier Scorecard - Federal Communications Commission (FCC

12 COMMON CARRIER SCORECARD REPORT

ScorecardCommon CarrierCommon Carrier

This section of the Scorecard provides quick-look infor-mation about the actions the FCC has taken toprotect consumers from slammingunexpected charges for calls placedto 900 number pay-per-call andother types of telephoneinformation servicesand unwanted unsolic-ited telephone marketingcalls and unsolicitedadvertisements sent tofax machines

You can browse and down-load detailed informationabout these issues from theFCCrsquos Web Site at httpwwwfccgovccbconsumer_news

Detailed information about900 number pay-per-call andother types of telephoneinformation services is alsoincluded in the December1997 issue of the CommonCarrier Scorecard You canbrowse and download the1997 issue of the Scorecardat httpwwwfccgovBureausCommon_CarrierReportsscore_card_97html

You can also request one ofthe FCC offices listed on page 49 of thisScorecard to send you copies of these documents

Slamming

Telephone InformationServices

Unsolicited TelephoneMarketing Callsand Faxes

A QUICK LOOK

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 15: Common Carrier Scorecard - Federal Communications Commission (FCC

13FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Slamming is a term used to de-scribe any practice that changesa subscriberrsquos preferred tele-phone company without thesubscriberrsquos knowledge or con-sent

SLAMMIMG

Slamming

A subscriberrsquos preferred tele-phone company may not lawfullybe changed without his or her ex-press consent

Slammed consumers unable touse their preferred carrier maylose important service features orpremiums such as frequent fliermiles provided by their properlyauthorized carrier get lower-quality service or be chargedhigher rates for their long dis-tance calls

Slamming also distorts telecom-munications markets by enablingcompanies engaged in misleadingpractices to increase their cus-tomer bases revenues and prof-itability through illegal means

The FCC is committed to ensur-ing that a subscriberrsquos telephoneservice is not changed without hisor her express consent and hasadopted rules and policies to pro-tect consumers from slamming

The Telecommunications Act of1996 substantially bolstered the

The Telecommunications Act of1996

The proposed new rules wouldprovide further economic disin-centives for carriers to slam im-pose more rigorous verificationrequirements in order to protectconsumers from unscrupulouscarriers who use deceptivetelemarketing practices imple-ment sensibly the statutory pro-hibition against slamming by anytelecommunications carrier pro-tect the rights of consumers to ex-ercise choice in telecommunica-tions carriers and ultimately helppromote full and fair competitionamong telecommunications car-riers in the marketplace by ensur-ing that consumersrsquo choices arehonored

The FCC is expected to adoptadditional anti-slamming rules bythe end of 1998

used to verify long distance car-rier changes should be strength-ened whether unauthorized car-riers should be liable for any pre-miums such as frequent fliermiles that slammed consumerswould have received from theirauthorized carriers and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers

FCCrsquos efforts to eliminate slam-ming This federal law expandedthe scope of the FCCrsquos authorityover slamming-related issues toall telecommunications carriersincluding local carriers

The law provides that no telecom-munications carrier shall submit orexecute a change in a consumerrsquosselection of a provider of telephoneexchange service or telephone tollservice except in accordance withthe FCCrsquos verification procedures

The law also provides that anytelecommunications carrier thatviolates the FCCrsquos verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumerrsquos original pre-ferred carrier for an amount equalto all charges paid by the con-sumer to the unauthorized carrier

These provisions generate mar-ketplace incentives for the carri-ers to resolve the problem ofslamming prior to FCC interven-tion and enforcement

Proposed Additional ConsumerSafeguards

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards to

protect consumers from slam-ming

For instance the FCC asked forcomment on issues such aswhether the current procedures

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 16: Common Carrier Scorecard - Federal Communications Commission (FCC

14 COMMON CARRIER SCORECARD REPORT

The FCC has consistently empha-sized the critical importance ofenforcement through its com-plaint process to ensure that com-panies regulated by the FCC donot charge unjust and unreason-able rates engage in unjust un-reasonable or unreasonably dis-criminatory practices or other-wise conduct their regulated op-erations in a manner that may beharmful to consumers and tocompetition

The Common Carrier BureaursquosEnforcement Divisionrsquos investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers

Ten companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1260000 fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations with com-bined proposed forfeiture penal-ties of $3800000 and five No-tices of Forfeiture have been is-sued with combined forfeiturepenalties of $5961500

The FCC also revoked the oper-ating authority of a group of com-monly-owned companies due tothe number and nature of slam-ming complaints

FCC Slamming Enforcement Actions

A QUICK LOOK

Company Name Proposed Forfeiture Amount

All American Telephone Company Inc $1040000Amer-I-Net Services Corporation 1360000Brittan Communications International Corp 1120000Heartline Communications Inc1 200000Minimum Rate Pricing Inc 80000

Forfeitures

Company Name Forfeiture Amount

Excel Telecommunications Inc $ 80000Fletcher Companies (slamming and related violations) 5681500Long Distance Services Inc (Troy Michigan)1 80000Long Distance Services Inc (Virginia) 80000Target Telecom Inc 40000

Consent Decrees

Company Name Voluntary Payments to the US Treasury2

ATampT Corp $ 30000Cherry Communications Inc1 500000Home Owners Long Distance Inc 30000LCI International Worldwide Telecommunications 15000Matrix Telecom Inc 30000MCI Telecommunications Corp 30000Nationwide Long Distance Inc1 30000Operator Communications Inc dba Oncor 500000TELCAM Telecommunications Company of the Americas 15000Winstar Gateway Network Inc 80000

Other Actions

The FCC revoked the operating authority of the following group of compa-nies owned andor operated by Daniel Fletcher CCN Inc Church Dis-count Group Inc Discount Calling Card Inc Donation Long DistanceInc Long Distance Services Inc Monthly Discounts Inc Monthly PhoneServices Inc and Phone Calls Inc

Note 1 The FCC has been advised that these companies filed for bankruptcyNote 2 The companies listed under Consent Decrees also voluntarily agreed toprovide additional consumer protections

Notices of Apparent Liability

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 17: Common Carrier Scorecard - Federal Communications Commission (FCC

15FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

TELEPHONE INFORMATION SERVICES

900 NUMBER

$

AND OTHER TYPES OF TELEPHONE INFORMATION SERVICES

I nformat ionservices offertelephone callers

the opportunity to obtaina wide variety of telephoneprograms that provide recordedor live information and entertainment

Examples of information services include medical stockmarket sports and product information Also available areso-called ldquoadultrdquo services ldquochatrdquo lines and psychic advice

The FCC and the Federal Trade Commission (FTC) haverules to protect consumers from abusive information serviceindustry practices

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 18: Common Carrier Scorecard - Federal Communications Commission (FCC

16 COMMON CARRIER SCORECARD REPORT

The FCCrsquos Information Ser-vices Rules

The FCC regulates United Statestelephone companies that are in-volved in transmitting and billinginterstate pay-per-call and othertypes of information services

The FCCrsquos rules governing 900number pay-per-call and othertypes of information services aredesigned to ensure that consum-ers are fully informed about theinformation services they chooseto purchase and are protectedfrom unexpected charges for callsplaced to information services

The FCCrsquos rules require that anyinterstate service -- other thantelephone company directory as-sistance service -- that chargesconsumers for information or en-tertainment must be providedthrough a 900 number unless theservice is offered under what iscalled a ldquopresubscription or com-parable arrangementrdquo

count or through a debit creditor calling card

When a consumer calls a toll-freenumber -- the information pro-vider cannot call the consumerback collect for the provision ofaudio or data information ser-vices products or simultaneousvoice conversation services suchas chat lines Also callers to toll-free numbers may not be con-nected to 900 pay-per-call num-bers

900 Number Blocking Service

The FCCrsquos rules require localtelephone companies to offer con-sumers where it is technicallyfeasible to do so the option ofblocking access to 900 numberservices

This important safeguard enablesconsumers to protect themselvesagainst unauthorized 900 numbercalls placed from their telephonelines

Disconnection of TelephoneService

The FCCrsquos rules prohibit tele-phone companies from discon-necting a telephone subscriberrsquoslocal or long distance telephoneservice due to the subscriberrsquosfailure to pay 900 numbercharges charges for pre-sub-scribed information services ordisputed charges for interstate in-formation services provided on acollect basis

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas ldquosubscribedrdquo to the informa-tion service -- or may be thecallerrsquos authorization to bill an in-formation service call to a pre-paid account or to a credit debitcharge or calling card number

Toll-Free Numbers

The FCCrsquos rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers

The FCCrsquos rules generally pro-hibit the use of 800 numbers orany other number advertised orwidely understood to be toll-freeto charge callers for informationservices

Under the FCCrsquos rules callers canbe charged for these types of callsif the caller has a written agree-ment to obtain and be charged forthe service -- or has agreed to payfor the service by prepaid ac-

Pay-per-call is a specific typeof information service Underfederal law pay-per-call servicesare those information servicesthat are offered only through 900numbers and carry a fee greaterthan the cost of simply transmit-ting the call The fee may be ei-ther a per-minute charge or a flatfee per call

I nformation services is abroad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers

Know The Difference

A QUICK LOOK

$The terms ldquopay-per-callrdquo and ldquoinformationservicesrdquo are often used interchangeably

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 19: Common Carrier Scorecard - Federal Communications Commission (FCC

17FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Bills for Information Services

The FCCrsquos rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed informationservices to list those charges in aportion of the bill that is separatefrom local and long distance tele-phone charges This requirementenables consumers to easily iden-tify information service chargesincluded with their telephone bill

In addition telephone companiesmust include with the bill infor-mation outlining consumersrsquorights and responsibilities withrespect to payment of informa-tion service charges

The FTCrsquos 900 Number Rule

The FTC also regulates the pay-per-call industry and has createdthe 900 Number Rule to protectthe rights of consumers regard-ing pay-per-call transactions

FTC brochures regarding 900numbers 800 numbers interna-tional information services fairdebt collection and fair creditbilling may be obtained by

writing to the Federal TradeCommission Public ReferenceBranch Drop H240 WashingtonDC 20580

calling the FTCrsquos ConsumerResponse Center at (202)326-3128 or

visiting the FTCrsquos Web Site athttpwwwftcgov

Carefully review your telephonebill every month Look for companynames you do not recognize andcharges for information service callsyou did not place or authorize

If you identify any billing problemsimmediately call the companieslisted on the bill Ask the compa-nies to explain the charges and re-quest a billing adjustment for incor-rect charges

Be aware that some informationproviders may employ an indepen-dent billing company or a collectionagency to pursue collection of in-formation service charges removedfrom your telephone bill

Educate children and other indi-viduals who make telephone callsfrom your telephone line about thecharges for calls placed to informa-tion services

Protect yourself against unautho-rized 900 number calls placed fromyour telephone line Subscribe toyour local telephone companyrsquos 900number blocking service if you donot want to incur these charges

Carefully read advertisementsfor information services Some ad-vertisements for information ser-vices do not disclose the charges forcalling the advertised numbers

Contact your local and long dis-tance companies and ask whether itis possible to block the placementof long distance or international callsfrom your telephone line Beforerequesting this service considerwhether you need to place calls tofriends family members or busi-nesses in other states or countries

Donrsquot call telephone numberswith 809 758 or 664 area codes ornumbers beginning with 011 unlessyou want to place a call to anothercountry

Listen to the preamble or intro-ductory message when calling a 900number or other type of informationservice number Immediately hangup if you are not interested in theservice or do not want to pay anycharges for the call

Be suspicious of offers for freecalls or services If it sounds toogood to be true -- it probably is 900number services always involvecharges to the caller -- even if youare calling to claim a ldquofreerdquo prizeOther types of information servicesare rarely free even if they are pro-vided over toll-free numbers

Think twice before requesting areturn call Some information ser-vice companies use an option forcallers to receive information by re-questing a return call If you selectthis option and the call is returnedyou may be charged for a collectcall

Exercise caution when acceptingan instant calling card You may dialan advertised number and be offereda ldquocalling cardrdquo that can be used im-mediately to access the advertisedinformation

These calling cards have numericalcodes -- sometimes based on thetelephone number of the line fromwhich the call was placed -- that areused to charge callers for the infor-mation service call

Here are some quick tipsthat can save you money

TELEPHONE INFORMATION SERVICES

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

secivreSnoitamrofnIenohpeleTfosepyTrehtOdnallaC-reP-yaPrebmuN009

cipoT eussI rofoGoTerehWoTdnAnoitamrofnI

stnialpmoCeliF

-reP-yaPrebmuN009secivreSllaC

gnolrolacolfonoitcennocsiD-nonrofecivresenohpeletecnatsid

segrahcrebmun009fotnemyap

snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 20: Common Carrier Scorecard - Federal Communications Commission (FCC

18 COMMON CARRIER SCORECARD REPORT

Complaints about issues regulated by the Federal Trade Commissionshould be directed to the Federal Trade Commission at the followingaddress Consumer Response Center Federal Trade Commission DropH285 600 Pennsylvania Avenue NW Washington DC 20580

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

You can obtain the telephone number and address for your state regula-tory agency from your local or state consumer offices or the governmentsection of your telephone directory The telephone number for your stateregulatory agency can also be found in the How to File Complaints sec-tion of this Scorecard and on the FCCrsquos web site athttpwwwfccgovccbconsumer_newsstate_puchtml

A QUICK LOOK

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snoitacinummoClaredeFnoissimmoC

nodeifitnediyletarapestonsegrahCllibenohpeleteht

snoitacinummoClaredeFnoissimmoC

-reP-yaPrebmuN009secivreSgnikcolBllaC

ehtmorfecivresniatbootelbanUkcolbotynapmocenohpeletlacol

rolaitnedisermorfdecalpsllac009senohpeletssenisub

snoitacinummoClaredeFnoissimmoC

rebmun009arofllibadevieceRecivresgnikcolbhguohtnevellac

lacolehtmorfderedrosawynapmocenohpelet

snoitacinummoClaredeFnoissimmoC

seussIrehtOllAsrebmuN009gnivlovnI

noissimmoCedarTlaredeF

secivreSnoitamrofnIrebmuN009nahTrehtO

secivreSllaC-reP-yaP

etatsartnirolacolrehtodna679secivresnoitamrofni

noissimmocytilitucilbupetatS

ro008otdecalpsllacrofsegrahCsrebmuneerf-llotrehto

snoitacinummoClaredeFnoissimmoC

otdecalpsllacrofsegrahCsrebmunlanoitanretni

snoitacinummoClaredeFnoissimmoC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 21: Common Carrier Scorecard - Federal Communications Commission (FCC

19FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

And

UnsolicitedTelephone

FaxesMarketing Calls

The Telephone Consumer Protec-tion Act (TCPA) is a federal lawthat was enacted on December 201991 to address consumer con-cerns about the growing volumeof unsolicited telephone market-ing calls and the increasing useof automated and prerecordedtelephone calls

Federal Law and the FCCrsquos Rules Protect Consumers

The TCPA imposes restrictions on the use of automatic telephonedialing systems (also called autodialers) artificial or prerecorded voicemessages and telephone facsimile (fax) machines to send unsolic-ited advertisements

The FCC adopted rules and regulations effective December 20 1992implementing the TCPA Different rules and regulations apply tocalls placed to homes and calls places to businesses These rules andregulations do not apply to unsolicited messages sent via E-mail orthe Internet

TELEPHONE MARKETING CALLS AND FAXES

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 22: Common Carrier Scorecard - Federal Communications Commission (FCC

20 COMMON CARRIER SCORECARD REPORT

Unsolicited Telephone Marketing Calls

Sales and other organizations commonly place unsolicited telephonemarketing calls to potential customers or donors Some consumersmay welcome these calls while others may not

Telemarketers may obtain your telephone number in a variety ofways For instance the store where you purchased products mayinclude your name address and telephone number on marketing listssold to other organizations Also telemarketers sometimes call allnumbers in numerical order for a neighborhood or telephone ex-change

Restrictions on Telemarketing Calls Placed to Your Home

The FCCrsquos rules prohibit telephone solicitations before 800 am orafter 900 pm (local time at your home) Prerecorded unsolicitedcalls placed to home telephone numbers are unlawful subject to lim-ited exceptions

Solicitor Identification Requirements

The FCCrsquos rules require persons or entities making a telephone so-licitation to your home to provide the following information

the name of the individual caller

the name of the person or entity on whose behalf the call isbeing made and

a telephone number or address at which that person or entitymay be contacted

Also any person business or entity using an autodialer to transmitan artificial (computerized) voice or prerecorded voice message --including such calls placed to business numbers -- must clearly stateits identity at the beginning of the message and its telephone num-ber or address during or after the message

The telephone number provided cannot be the number of theautodialer or prerecorded message player which placed the call andcannot be a 900 number or any other number for which charges ex-ceed local or long distance transmission charges

A QUICK LOOK

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 23: Common Carrier Scorecard - Federal Communications Commission (FCC

21FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Ask the solicitor to stop calling your telephonenumber or sending unsolicited fax advertisements

You should tell each caller placing live solicita-tion calls to your home telephone not to call againand ask to be placed on the callerrsquos do-not-call listThis should stop all calls from the caller and affili-ated entities

The FCCrsquos Do-Not-Call Rules require the callerto keep a record of this request for ten years (Tax-exempt nonprofit organizations are not required tokeep do-not-call lists) The caller may not makeany more calls to your home after the do-not-callrequest is made

Find out if your state permits you to file suitto stop solicitation calls or faxes andor file suit fordamages The penalty specified in the TCPA forviolations of the TCPA and the FCCrsquos rules is gen-erally $500 in damages or actual monetary losses(whichever is greater)

Request the Direct Marketing Association toadd you to its list of consumers who do not want toreceive telemarketing calls You can be placed onthis list by sending your name telephone number(including the area code) and address (includingthe zip code) to

Telephone Preference ServiceDirect Marketing AssociationPO Box 9014Farmingdale NY 11735-9014

This action should reduce the number of unwantedcalls but may not stop all unwanted calls

Obtain information about the Federal TradeCommissionrsquos Telemarketing Sales Rule via theWorld Wide Web at httpwwwftcgov or by writ-ing to

Federal Trade CommissionPublic Reference BranchDrop H240Washington DC 20580

Write to the Federal Trade Commission at thefollowing address to report false or deceptive tele-phone solicitation sales practices

Federal Trade CommissionConsumer Response CenterDrop H285Washington DC 20580

Contact your local FBI or state attorneygeneralrsquos office about fraudulent telephone solici-tation practices

Send complaints about information receivedthrough the United States Postal Service in con-nection with fraudulent telephone solicitation prac-tices to

Mail FraudChief Postal Inspector475 LrsquoEnfant Plaza SWWashington DC 20260-2181

Here are some actions you can take to pro-tect yourself from unwanted telephone mar-keting calls placed to your home telephonenumber and unwanted advertisements sentto your fax machine

TELEPHONE MARKETING CALLS AND FAXES

STOPHow You Can

Unwanted CallsAnd Fax Ads

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 24: Common Carrier Scorecard - Federal Communications Commission (FCC

22 COMMON CARRIER SCORECARD REPORT

Fax Messages

Unsolicited Advertisements Sent to Home and Busi-ness Fax Machines

The FCCrsquos rules prohibit the transmission of unsolicited advertise-ments to fax machines

No person may transmit an advertisement describing the commer-cial availability or quality of any property goods or services to yourfax machine without your prior express permission or invitation

Established Business Relationship and Faxes

If you have an established business relationship with the person orentity sending the message an invitation or permission to receiveunsolicited fax advertisements is presumed to exist

You have an established business relationship with a person or entityif you have made an inquiry application purchase or transactionregarding products or services offered by such person or entity

You can end this relationship by telling the person or entity that youdo not want any more unsolicited advertisements sent to your faxmachine

Identification Required on Fax Messages

The FCCrsquos rules require that any message sent to a fax machine mustclearly mark on the first page or on each page of the message

the date and time the transmission is sent

the identity of the sender and

the telephone number of the sender or of the sending fax machine

All fax machines manufactured on or after December 20 1992 andall facsimile modem boards manufactured on or after December 131995 must have the capability to clearly mark such identifying infor-mation on the first page or on each page of the transmission

No person maytransmit anadvertisementdescribing thecommercialavailability orquality of anyproperty goodsor services toyour fax machinewithout yourprior expresspermission orinvitation

A QUICK LOOK

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 25: Common Carrier Scorecard - Federal Communications Commission (FCC

23FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

This section of the Scorecard describes trends in complaints and in-quiries processed during 1997 by the Consumer Protection Branchof the Common Carrier Bureaursquos Enforcement Division This sec-tion also provides an analysis of how companies involved with tele-

phone-related complaints performed individually and as a group

Consumers contact the Branch to obtain information to resolve a complaintor to express their opinions on important telecommunications issues TheFCCrsquos decision-makers review information provided by consumers and usethat information to develop policies and rules that govern the practices ofregulated companies and protect the interests of consumers

While American consumers make billions of telephone calls every year theFCC received less than one telephone-related consumer complaint for everytwo million toll calls made

TRENDS IN CONSUMERCOMPLAINTS AND INQUIRIES

ScorecardCommon CarrierCommon Carrier

T S REND

TRENDS

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 26: Common Carrier Scorecard - Federal Communications Commission (FCC

24 COMMON CARRIER SCORECARD REPORT

A number of consumers filing complaints with the FCC about tele-phone-related issues indicate that they have already requested at leastone of the companies involved with their complaint to resolve theproblem -- and that their complaints were not resolved by the con-tacted companies

Most of the FCCrsquos consumer correspondence about telephone-re-lated issues consists of complaints about the rates andor practices oftelecommunications companies

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Consumer Protection Branch

The Branch serves a complaint by issuing an ldquoOfficial Notice ofInformal Complaintrdquo to all companies identified in the complaintthat are within the FCCrsquos jurisdiction or that may in the staffrsquos viewassist in the resolution of the complaint

Service of a complaint does not necessarily indicate wrongdoing bythe served company

Appendix A to this Scorecard lists the 108 companies served morethan 50 complaints during 1997 Appendix B lists the 19 companies-- other than local telephone companies -- served more than 50 com-plaints and that had publicly disclosed revenue figures

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997 and Appendix D lists the 22 companiesserved more than 25 OSP complaints

The appendices also show communications revenue and complaintindices The Description of Appendices section of this Scorecardexplains how complaint indices were calculated

TRENDS

Analysis of Consumer Complaints

Companies can help con-sumers by

bull immediately resolvingvalid consumer complaintswithout ldquopassing the buckrdquo

bull providing more informa-tion to consumers abouttheir services

bull improving their customerservice programs and

bull maintaining better bill-ing and service records

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 27: Common Carrier Scorecard - Federal Communications Commission (FCC

25FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Consumer Complaints and Inquiries Reach theFCC in Several Ways

During 1997 the Consumer Protection Branch processed 44035written complaints and inquiries By comparison the Branch pro-cessed 35095 written complaints and inquiries during 1996 and25482 during 1995

The majority of written complaints and inquiries were filed by con-sumers on their own behalf Written complaints and inquiries werealso sent to the FCC on behalf of consumers by members of Con-gress the President and various state local and federal agencies

During 1997 the Branch processed 18850 consumer telephone callsBy comparison the Branch processed 24837 consumer telephonecalls during 1996 and 38117 calls during 1995 The reduction inthe number of consumers calling the Branch during 1996 and 1997may be due to the launch of the FCCrsquos National Call Centerrsquos toll-free 1-888-225-5322 number (1-888-CALL-FCC)

Figure 1

TRENDS

Consumer Complaints and Inquiries

1995

1996

1997

10

20

30

40

50

1995

38117

35095

24837

1996

1997

18850

Written Consumer Complaints and Inquiries

Consumer Telephone Inquiries

44035

Thousands

25482

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

Page 28: Common Carrier Scorecard - Federal Communications Commission (FCC

26 COMMON CARRIER SCORECARD REPORT

Figure 2 shows the types of information consumers requested andthe number of consumers who requested that information

Consumers Call the Consumer Protection Branchfor Information on a Variety of Issues

Under federal law and the FCCrsquos rules consumers must send awritten complaint to the FCC about telephone-related issues TheBranch generally cannot process a complaint that is received viaa telephone call

TRENDS

1 2 3 4 5 6

Slamming 5980

Thousands

How To File A Complaint With The FCC

4814

Other Issues 2809

Complaint Status 1948

Telephone Fraud 1432

Disconnection Of Telephone Service

973

520

Operator Service Providers

Telephone Information Services

374

The 18850 consumers who called the Consumer ProtectionBranchrsquos Consumer Hotline during 1997 requested informa-tion on a variety of issues

Figure 2

27FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Issues Raised in Written ConsumerComplaints and Inquiries

Most consumer complaints andinquiries fall into a few broad cat-egories The relative volume forspecific categories changes overtime but the total number of writ-ten complaints and inquiries hasbeen rising rapidly for severalyears

Figure 3 shows that of the 44035written complaints and inquiriesprocessed by the Branch in 1997

radicradicradicradicradic 46 percent or 20475 involvedslamming issues

radicradicradicradicradic 10 percent or 4282 involved900 number pay-per-call servicesother types of interstate informa-tion services and international in-formation services

radicradicradicradicradic 5 percent or 2262 involvedinterstate operator service pro-vider (OSP) rates and servicesand

radicradicradicradicradic 4 percent or 1789 involvedunsolicited telephone marketingcalls and faxes

The remaining 35 percent or15227 of the complaints and in-quiries processed by the Branchinvolved issues such as interstateand international services andrates the marketing and advertis-

TRENDS

The Consumer Protection Branch processed 8940 morewritten complaints and inquiries during 1997 than in 1996

ing practices used by some regu-lated companies and complaintsthat were not within the FCCrsquosjurisdiction and that were for-

The FCC has taken ac-tions to protect consum-ers against

bull slamming

bull unexpected charges forcalls placed to 900 num-bers and other types oftelephone informationservices

bull high rates charged bysome OSPs and

bull unwanted unsolicitedtelephone marketing callsand unsolicited adver-tisements sent to fax ma-chines

warded by the Branch to otherfederal and state agencies

By comparison of the 35095written complaints and inquiriesprocessed by the Branch during1996 36 percent or 12795 in-volved slamming issues 13 per-cent or 4621 involved 900number pay-per-call and othertypes of information services 12percent or 4132 involved OSPrates and services 4 percent or1530 involved unsolicited tele-phone marketing calls and faxesand 35 percent or 12017 in-volved other issues

46

10

5

435

Unsolicited TelephoneMarketing Calls and Faxes

Operator Service Providers

TelephoneInformation Services

The Top Categories of Telephone-Related Consumer Complaintsand Inquiries

Slamming

Other

Figure 3

28 COMMON CARRIER SCORECARD REPORT

Long Distance CompaniesServed More Than 50 Complaints

TRENDS

During 1997 108 companies were served more than 50 complaintsThis figure includes 50 long distance companies that had filed Uni-versal Service Fund (USF) Worksheets by May 11 1998

Appendix A to this Scorecard explains how the complaint indiceswere calculated for the 50 long distance companies and organizesthese companies into 12 groups in order of declining complaint indi-ces

The complaint indices for thesecompanies range from 249 to02 complaints per million dol-lars of revenue

Figure 4 shows the companieswith the highest and lowest com-plaint indices

The five long distance compa-nies with the lowest and bestcomplaint index are listed underGroup 12

The 12 long distance companieswith the highest complaint indi-ces are listed in Groups 1 2 and3

Figure 4 also shows that someof the largest long distance com-panies -- which are listed underGroup 12 -- have a group com-plaint index far below the groupcomplaint indices for the smaller long distance companies listed un-der Groups 1 2 and 3

While the requirement to file USF worksheets is not based on a simple revenuethreshold all carriers with more than $2 million in intrastate and interstateconsumer toll revenues are required to file USF Worksheets and revenue infor-mation with the FCC

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Figure 4Long Distance Company

Complaint Indices

Group 1 Pilgrim Home Owners Axces and Group L D Group 2 Brittan LDM LDC and Preferred Carrier Group 3 WinStar QCC Network and N American Group 12 MCI WorldCom VarTec ATampT and Cable amp Wireless

Group 3

Group 12

Group 1

Group 2

CO

MPL

AIN

TS P

ER M

ILLI

ON

DO

LLA

RS

5

10

15

20

25

0

30

29FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and BillingAgents Served More Than 50 Complaints

Company

Figure 5Complaints Served on OtherCompanies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

Appendix A lists under the ldquoOther Companiesrdquo category 36 compa-nies served more than 50 complaints during 1997 that did not fileUSF Fund Worksheets before May 11 1998

While the USF Worksheet reporting requirement is not based on asimple revenue threshold all carriers with more than $2 million inintrastate and interstate consumer toll revenues should have filedUSF Worksheets Total ComplaintsSome of the companies listed in Appendix A should have filed USFWorksheets but had not done so by May 11 1998 Accordingly theFCC is reviewing this matter Any carriers found to be in violationof the FCCrsquos rules will be subject to appropriate sanctions

Figure 5 shows the 19 companiesin the ldquoOther Companiesrdquo cat-egory that were served 100 ormore complaints during 1997 Ifthe companies listed in Figure 5are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their complaint indiceswould be extremely high -- rang-ing from 50 to 844 complaintsper million dollars of revenueThese complaint indices aremuch higher than the highestcomplaint index (249) listed inAppendix A

Some companies do not bill theircustomers directly but rely onbilling agents to subcontract with

the local telephone companies to arrange billing and collection forservices rendered Appendix A lists under the ldquoBilling Agentsrdquo cat-egory the 10 billing agents served more than 50 complaints in 1997

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1688Trans National (Business Discount Plan) 1182American Business Alliance (acquired by Tel-Save) 1119LD Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc 623LD Services Inc 420Network Access Inc 275Integreted Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Company

Total Complaints Served

30 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served MoreThan 50 Slamming Complaints

Note 1 The slamming complaint in-dices are based on toll revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

TRENDS

Slamming is a term used to describe any practice that changes a subscriberrsquospreferred telephone company without the subscriberrsquos knowledge or consent

Figure 6 Long Distance CompanySlamming Complaint Indices

During 1997 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was slamming

The second section of this Scorecard includes information about theactions the FCC has taken to protect consumers against slamming

The Branch processed 20475slamming complaints and in-quiries during 1997 This fig-ure represents approximately46 percent of the total num-ber of written telephone-re-lated consumer complaintsand inquiries processed by theBranch during this time pe-riod

Appendix C to this Scorecardlists the long distance compa-nies served more than 50slamming complaints and thenumber of slamming com-plaints served on each listedcompany

Appendix C organizes thelong distance companies thatfiled Universal Service Fund(USF) worksheets by May 11 1998 into seven groups with com-bined toll revenue and a group complaint index for each group Thegroup complaint indices range from 181 to 01 complaints per mil-lion dollars of revenue

Figure 6 shows the companies with the highest and lowest complaintindices The five long distance companies with the lowest and bestcomplaint index are listed under Group 7 The 12 long distancecompanies with the highest complaint indices are listed in Groups 12 and 3

Sla

mm

ing

Co

mp

lain

ts P

er

Milli

on

Do

llars

Group 1 Axces Home Owners Atlas and Brittan Group 2 LDM Group LD Preferred Carrier and LDC Group 3 WinStar QCC Coast International and EqualNet Group 7 Sprint Frontier WorldCom MCI and ATampT

2

6

8

0

4

10

12

14

16

18

2020202020

Group 2

Group 7

Group 3

Group 1

31FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Other Companies and Billing Agents ServedMore Than 50 Slamming Complaints

Appendix C lists under the ldquoOther Companiesrdquo category 18 compa-nies served more than 50 slamming complaints that did not file USFworksheets before May 11 1998

As previously indicated while the USF Worksheet reporting require-ment is not based on a simple revenue threshold all carriers withmore than $2 million in intrastate and interstate consumer toll rev-

enues should have filed USFWorksheets

Some of the companies listed inAppendix C should have filed theworksheets but had not done soby May 11 1998 Accordinglythe FCC is reviewing this matterAny carriers found to be in vio-lation of the FCCrsquos rules will besubject to appropriate sanctions

Figure 7 shows the 18 companiesin the ldquoOther Companiesrdquo cat-egory that were served more than50 complaints in 1997

If the companies listed in Figure7 are carriers -- and if their con-sumer toll revenues were greaterthan $2 million -- they shouldhave filed USF Worksheets

If the consumer toll revenues forthese companies are $2 million orless their slamming complaint in-

dices would be extremely high -- ranging from 35 to 835 complaintsper million dollars of revenue

These complaint indices are much higher than the highest slammingcomplaint index (181) listed in Appendix C

Appendix C lists under the ldquoBilling Agentsrdquo category the two billingagents that were served more than 50 slamming compaints in 1997

Figure 7Slamming ComplaintsServed on Other Companies

Note Service of a complaint does notnecessarily indicate wrongdoing by theserved company

TRENDS

The FCC has been advised that these companies filed for bankruptcy

LD Services (Michigan) 1670 Trans National (Business Discount Plan) 1090 American Business Alliance (acquired by Tel-Save) 967 LD Services (Virginia) -- a Fletcher Company 866 Heartline Communications Inc 623 Minimum Rate Pricing Inc 600 LD Services Inc 370 Integrated Tele Services 230 Nationwide Telecom Inc 182 Future Telephone Communications LTD 160 Discount Network Services 130 Network Utilization Services 130 Corporate Services 101 Least Cost Routing Inc 92 Telec Inc 90 Switched Services Communications 78 Amer-I-Net Services 72 Building Futures in Communications 70

Company

Total Complaints Served

32 COMMON CARRIER SCORECARD REPORT

Complaint Indices For Companies Served MoreThan 25 Operator Service Provider (OSP) Complaints

TRENDS

Note 1 The OSP complaint indicesare based on OSP revenues

Note 2 Service of a complaint doesnot necessarily indicate wrongdoing bythe served company

Figure 8OSP Complaint Indices

During 1997 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providersrsquo rates and practices

OSPs provide long distance --and in some cases local tele-phone service -- from pay tele-phones or other types of tele-phones located in public placessuch as hotels motels and hos-pitals

The first section of thisScorecard provides in-depth in-formation about the actions theFCC has taken to protect con-sumers from the high ratescharged by some OSPs

During 1997 the Branch pro-cessed 2262 interstate OSPcomplaints and inquiries Thisfigure represents approximately5 percent of the total number of

complaints and inquiries processed by the Branch during this timeperiod

Figure 8 shows the complaint indices for the 16 companies that wereserved more than 25 OSP complaints during 1997 and that filedUniversal Service Fund worksheets by May 11 1998 The groupcomplaint indices for these companies range from 82 to less than05 complaints per million dollars of OSP revenues

The four OSP companies with the lowest and best complaint indexare listed in Group 12 The 12 OSP companies with the highestcomplaint indices are listed in Groups 1 2 and 3

Appendix D to this Scorecard lists for each company included inFigure 6 the total number of OSP complaints served group OSPrevenue data and the group index Appendix D also lists the threeldquoBilling Agentsrdquo and three ldquoOther Companiesrdquo that were served morethan 25 OSP complaints

Group 4

Group 3

Group 2

Group 1

OSP

Co

mp

lain

ts P

er

Mill

ion

Do

llars

Group 1 Operator Services N American Natrsquol Telcom and OncorGroup 2 Cleartel Worldxchange US Osiris and OPTICOMGroup 3 Network AMNEX Conquest and USLDGroup 4 Intellical WorldCom MCI and ATampT

9

8

7

6

5

4

3

2

1

0

33FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Complaints Served on Local Telephone Companies

TRENDS

Figure 9 shows the local tele-phone companies that wereserved more than 50 complaintsduring 1997

Figure 9 also shows for eachcompany a slamming complaintindex and a complaint index forcomplaints involving issues otherthan slamming

Appendix A to this Scorecard listsfor each company included inFigure 9 the total number of com-plaints served regarding all typesof telephone-related issues (in-

Note Service of a complaint does not necessarily indicate wrongdoing by the served company

Figure 9Local

TelephoneCompanyComplaint

Indices

Many consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC If the localtelephone company successfully resolves a complaint it may not be neces-sary for consumers to file a complaint with the FCC

cluding slamming) revenue dataand a complaint index based onthe total number of complaintsserved

Slamming complaints involvinglong distance and other types ofcompanies are served on localtelephone companies because thelocal telephone companies havein their records information es-sential to resolving slammingcomplaints

about services provided directlyto consumers by the local com-pany or services involving othercompanies

For example a local companymay be served with a complaintbecause it issued a bill for dis-puted long distance calls on be-half of the long distance companythat transmitted the calls In thiscase the local telephone companyis served because it has enteredinto a contractual arrangement torender bills for such callsA local telephone company may

also be served with complaints

Non-slamming Complaints ServedSlamming Complaints Served

0

005

01

015

02

025

03

ALLTEL

Amer

itech

Bell A

tlant

ic

BellSou

th

Cincinn

ati B

ell

Citizen

s

Front

ier GTESNET

SB

S

Co

mp

lain

ts P

er M

illio

n D

olla

rs

editors note
A complete copy of this chart is provided on the next page

34 COMMON CARRIER SCORECARD REPORT

Description of Appendices

Appendix AAll Types of Telephone-Related Complaints

APPENDICES

Appendix A lists the 108 companies served more than 50 complaintsduring 1997 The total number of complaints served on each com-pany is based on information contained in the Consumer ProtectionBranchrsquos consumer complaints databases

Long Distance Telephone Companies

There were 50 long distance companies served more than 50 com-plaints and that filed Universal Service Fund (USF) worksheets byMay 11 1998

For each of these companies a complaint index was calculated bydividing the number of complaints served on that company by theamount of telecommunications-related revenue it reported (measuredin millions of dollars) The carriers were then ranked in the order ofdeclining complaint indices

The revenue figures contained in the USF worksheets are confiden-tial so the revenue figures could not be reported -- nor can the indi-vidual company complaint indexes be released The companies weretherefore organized into groups of four or more in order to maintainconfidentiality A combined complaint index for each group was cal-culated by dividing the sum of their complaints by the sum of theirrevenues

The USF filings were due on March 31 1998 Not all telecommuni-cations companies had filed the form as of that time Revenue infor-mation was used to calculate complaint indexes if the carrier filed itsUSF worksheet before May 11 1998

Local Telephone Companies

For each of the 12 local telephone companies served more than 50complaints during 1997 a complaint index was calculated by divid-ing the number of complaints served on that company by the amountof its revenue from regulated services (measured in millions of dol-lars)

Revenue data for the Regional Bell Operating Companies are avail-able from the Preliminary Statistics of Communications Common Car-

35FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

I

APPENDICES

Appendix BComplaints Servedon Long DistanceTelephone Companieswith PubliclyDisclosed Revenue

riers released May 29 1998 Revenues for the other local telephonecompanies are from their annual reports

Billing Agents

Some companies do not bill their customers directly but rely on othercompanies known as ldquobilling agentsrdquo Billing agents sub-contractwith the local telephone companies to arrange billing and collectionfor services rendered Because of the nature of their business bill-ing agents are not required to file revenue information with the FCC

Ten billing agents were served more than 50 complaints in 1997Each was asked to provide its calendar year 1997 billing revenues soa complaint index could be calculated Crown Communications LongDistance Billing Company Inc Telephone Billing Service FederalTransTel Inc and American Telnet Inc declined to do so

Other Companies

Companies that are not carriers or carriers that have very low tele-communications revenues are not required to file Universal ServiceFund worksheets

Some of the 36 companies listed under this category should havefiled the worksheets but had not done so by May 11 1998 Accord-ingly the FCC is reviewing this matter Any carriers found to be inviolation of the FCCrsquos rules will be subject to appropriate sanctions

Since no USF revenue figures were available for these companies itis not possible to calculate their complaint indices

Appendix B lists the 19 long distance telephone companies servedmore than 50 complaints and that had publicly disclosed revenuefigures Because of differences in accounting methods the publiclyavailable revenue figures do not necessarily match the revenue fig-ures reported in the Universal Service Fund worksheets

The complaint index is calculated by taking the number of com-plaints served on that company during 1997 and dividing it by theamount of its long distance revenue (in millions)

36 COMMON CARRIER SCORECARD REPORT

Appendix C lists the 61 companies served more than 50 slammingcomplaints during 1997

Long Distance Telephone Companies

There were 31 long distance companies served more than 50 slam-ming complaints and that filed Universal Service Fund (USF)worksheets by May 11 1998

A complaint index was calculated for each company by dividing thenumber of slamming complaints served on that company by theamount of the consumer toll revenue it reported (measured in mil-lions of dollars) on its USF form The carriers were then ranked inthe order of declining complaint indices

The carriers were organized into groups of four or more in order tomaintain confidentiality of their toll revenues A combined com-plaint index for each group was calculated by dividing the sum oftheir complaints by the sum of their revenues

Local Telephone Companies

For each of the 10 local telephone companies served more than 50slamming complaints during 1997 a complaint index was calculatedby dividing the number of slamming complaints served on that com-pany by the amount of its revenue from regulated services (mea-sured in millions of dollars)

Billing Agents

Two billing agents received more than 50 slamming complaints in1997 Because we do not have toll-revenue figures for these compa-nies a complaint index could not be calculated

Other Companies

There were 18 companies served more than 50 slamming complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending com-plaints

Appendix CSlammingComplaints

APPENDICES

37FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Appendix D lists the 22 companies served more than 25 OSP com-plaints during 1997

Long Distance Telephone Companies

There were 16 long distance telephone companies served more than25 OSP complaints during 1997 and that filed Universal ServiceFund (USF) worksheets by May 11 1998 A complaint index wascalculated by dividing the number of OSP complaints served on thatcompany by the amount of the OSP revenue it reported (measured inmillions of dollars) on its USF form The companies were then rankedin the order of declining complaint indices

The companies were organized into groups of four in order to main-tain confidentiality of their OSP revenues A combined complaintindex for each group was calculated by dividing the sum of theircomplaints by the sum of their revenues

Billing Agents

Three billing agents received more than 25 OSP complaints in 1997Because we do not have OSP revenue figures for these companies acomplaint index could not be calculated

Other Companies

There were three companies served more than 25 OSP complaintsthat did not file Universal Service fund worksheets before May 111998 These companies were listed in order of descending OSP com-plaints

Appendix DOperator ServiceProvider (OSP)Complaints

Questions about the revenue figures or the complaint indices listedwithin the Scorecard appendices should be directed to the IndustryAnalysis Division at (202) 418-0940

Questions about the number of complaints served on each companyshould be directed to the FOIAInformation Team of the ConsumerProtection Branch The team can be reached by dialing the BranchrsquosConsumer Hotline at (202) 632-7553 After reaching the ConsumerHotline callers should leave a message in menu selection 8 Themessage should include the callerrsquos name telephone number and adescription of the requested information

Statistical DataIncluded in ThisScorecard Report

APPENDICES

38 COMMON CARRIER SCORECARD REPORT

APPENDIX A

Companies Served More Than 50 Complaints in 1997

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Pilgrim Telephone Inc 263Home Owners Long Distance Inc 192Axces Telecommunications Inc 316Group Long Distance Inc 298 Group 1 Totals and Index 1069 43 249

Brittan Communications Inc 485LDM Systems Inc 530LDC Telecommunications Inc 257Preferred Carrier Services Inc 148 Group 2 Totals and Index 1420 79 179

WinStar Gateway Network Inc (long distance operations) 224QCC Inc 180Network Operator Services Inc 199North American Communications Inc 134 Group 3 Totals and Index 737 61 121

Operator Communications Inc (Oncor) 494EqualNet Corporation 345National Telecom USA Inc 136The Furst Group 543 Group 4 Totals and Index 1518 167 91

Coast International Inc 86Atlas Communications Ltd 273American Network Exchange Inc (AMNEX) 435Cleartel Communications Inc 129 Group 5 Totals and Index 923 147 63

Operator Services Company 119RRV Enterprises Inc (Consumer Access) 162One Call Communications Inc (OPTICOM) 500North American Telephone Network 97 Group 6 Totals and Index 878 202 44

Intellicall Operator Services Inc 121National Accounts Long Distance Inc 156Matrix Telecom Inc 115Coastal Telephone Company 120 Group 7 Totals and Index 512 214 24

39FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Communication TeleSystems International (Worldxchange) 409Touch 1 Long Distance Inc 97National Telephone amp Communications Inc 160Conquest Operator Services Corp 55 Group 8 Totals and Index 721 438 16

USLD Communications Corp 309GE Exchange 53Midcom Communications Inc 60Telco Communications Group Inc 370 Group 9 Totals and Index 792 812 10

NOS Communications Inc 73Frontier Corporation (long distance operations) 752IXC Long Distance Inc 65EXCEL Communications Inc 613 Group 10 Totals and Index 1503 2799 05

Unidial Incorporated 61Tel-Save Inc 125LCI International Inc 571Sprint Corporation (long distance operations) 2065Cherry Communications Inc1 88 Group 11 Totals and Index 2910 9274 03

MCI Communications Corporation 4364WorldCom Inc 1241VarTec Telecom Inc 189ATampT Corp 5858Cable amp Wireless PLC 77 Group 12 Totals and Index 11729 65367 02

Totals and Index All Groups 24712 79603 03

Groups 1 through 12 above include only those companies that filed Universal Service Forms

Note 1 The FCC has been advised that this company filed for bankruptcy

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Long Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (Continued) Served (Millions) Index

40 COMMON CARRIER SCORECARD REPORT

Billing AgentsRanked by Complaints

Billing Concepts Corp 6059 2011 30OAN Services Inc 3477 827 42Integretel 1522 390 39International Telemedia Associates 953 124 77HOLD Billing Services 553 127 44Telephone Billing Service 338Long Distance Billing Company Inc 237Crown Communications 121American Telnet Inc 112Federal TransTel Inc3 75

Local Telephone CompaniesRanked by Complaint Index

Bell Atlantic 7588 24936 030U S WEST 2504 10022 025SBC 4590 18756 024Ameritech 2645 11775 022GTE2 2952 13537 022BellSouth 3090 14666 021SNET2 282 1480 019Citizens Utilities Company2 136 860 016Frontier Communications2 64 667 010ALLTEL 2 112 1269 009Cincinnati Bell2 55 670 008Sprint Corporation (United)2 424 5290 008

Companies Served More Than 50 Complaints in 1997

Complaints Revenue Complaint Served (Millions) Index

APPENDIX A

Note 2 Excludes long distance revenues

Note 3 Federal TransTel is also a long distance telephone company and did not file its USF form by May 11 1998

41FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Companies Served More Than 50 Complaints in 1997

APPENDIX A

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)4 1688Trans National Telephone (Business Discount Plan) 1182American Business Alliance5 1119

Long Distance Services (Virginia) -- a Fletcher Company 963Minimum Rate Pricing Inc 812Heartline Communications Inc4 623LD Services Inc 420

Network Access Inc 275Integrated Tele Services 256Inovate Telecom Inc 247Future Telephone Communications LTD 241

Nationwide Telecom Inc 199US Teleconnect 162Network Utilization Services 151Discount Network Services 143Least Cost Routing Inc 130Corporate Services 125VIP Telephone Network Inc 115HSS Vending 100

Americarsquos Tele-Network 99Telec Inc 92Amer-I-Net Services 82Switched Services Communications 78Building Futures in Communications 72Direct American Marketers 72Lifeline 72Pantel Communications Inc 72US Telephone 72Polar Communications Corp 64International Telecommunications Corp 60Nationwide Long Distance Inc4 60Psychic Discovery Network 60

ASC Telecom Inc 56Branstock Communications Inc 55Long Distance Network 54Teltrust Inc 52

Note 4 The FCC has been advised that these companies filed for bankruptcy

Note 5 American Business Alliance was acquired by Tel-Save Inc

Complaints Served

42 COMMON CARRIER SCORECARD REPORT

Long Distance Companies Served More Than 50 Complaints in 1997(Which Have Publicly Disclosed Revenues)

APPENDIX B

Complaints Revenue ComplaintCompany Served (Millions) Index

WinStar Gateway Network Inc (long distance operations) 224 16 144EqualNet Corporation 345 36 96Group Long Distance Inc 298 48 62OPTICOM (One Call Communications Inc) 500 118 42American Network Exchange Inc (AMNEX) 435 116 37USLD Communications Corp 309 241 13Communication TeleSystems International (Worldxchange) 409 345 12

Telco Communications Group Inc 370 555 07LCI International Inc 571 1001 06Frontier Corporation (long distance operations) 752 1322 06EXCEL Communications Inc 613 1180 05Cherry Communications Inc 88 180 05Tel-Save Inc 125 305 04MCI Communications Corporation 4364 17150 03

Sprint Corporation (long distance operations) 2065 8595 02VarTec Telecom Inc 189 820 02WorldCom Inc 1241 5897 02ATampT Corp 5858 39470 01Cable amp Wireless PLC 77 1066 01

43FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

APPENDIX C

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Axces Telecommunications Inc 178Home Owners Long Distance Inc 139Atlas Communications Ltd 237Brittan Communications Inc 443 Group 1 Totals and Index 997 55 181

LDM Systems Inc 489Group Long Distance Inc 214Preferred Carrier Services Inc 128LDC Telecommunications Inc 214 Group 2 Totals and Index 1045 67 156

WinStar Gateway Network Inc (long distance operations) 196QCC Inc 153Coast International Inc 78EqualNet Corporation 262 Group 3 Totals and Index 689 76 91

The Furst Group 438National Accounts Long Distance Inc 121North American Telephone Network 54Matrix Telecom Inc 84 Group 4 Totals and Index 697 168 42

National Telephone amp Communications Inc 143Coastal Telephone Company 93Touch 1 Long Distance Inc 63USLD Communications Corp 183IXC Long Distance Inc 54 Group 5 Totals and Index 536 507 11

Unidial Incorporated 52Tel-Save Inc 65EXCEL Communications Inc 333LCI International Inc 384Telco Communications Group Inc 97 Group 6 Totals and Index 931 3253 03

Companies Served More Than 50 Slamming Complaints in 1997

44 COMMON CARRIER SCORECARD REPORT

APPENDIX C

Companies Served More Than 50 Slamming Complaints in 1997

Holding Company

Bell Atlantic 6105 24936 024U S WEST 2042 10022 020Ameritech 2182 11775 019SBC 3436 18756 018BellSouth 2510 14666 017GTE1 1962 13537 014SNET1 210 1480 014Citizens Utilities Company1 66 860 008Sprint Corporation (United)1 355 5290 007ALLTEL 1 84 1269 007

Note 1 Excludes long distance revenue

Slamming TollLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index (continued) Served (Millions) Index

Totals and Index All Groups 24712 79603 03

Groups 1-7 listed above include only those companies that filed Universal Service Forms

Slamming RegulatedLocal Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Sprint Corporation (long distance operations) 1136Frontier Corporation (long distance operations) 218WorldCom Inc 541MCI Communications Corporation 1299ATampT Corp 2199 Group 7 Totals and Index 5393 61582 01

45FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

SlammingBilling Agents ComplaintsRanked by Complaints Served

Billing Concepts Corp 3298Long Distance Billing Company Inc 202

Other CompaniesRanked by Complaints

Long Distance Services Inc (Michigan)2 1670Trans National Telephone (Business Discount Plan) 1090

American Business Alliance3 967Long Distance Services (Virginia) -- a Fletcher Company 866Heartline Communications Inc2 623Minimum Rate Pricing Inc 600LD Services Inc 370

Integrated Tele Services 230Future Telephone Communications LTD 160Nationwide Telecom Inc 182Discount Network Services 130Network Utilization Services 130Corporate Services 101

Least Cost Routing Inc 92Telec Inc 90Switched Services Communications 78Amer-I-Net Services 72Building Futures in Communications 70

Companies Served More Than 50 Slamming Complaints in 1997

APPENDIX C

Note 2 The FCC has been advised that these companies filed for bankruptcy

Note 3 American Business Alliance was acquired by Tel-Save Inc

46 COMMON CARRIER SCORECARD REPORT

APPENDIX D

OSP OSPLong Distance Telephone Companies Complaints Revenue ComplaintRanked by Complaint Index Served (Millions) Index

Operator Services Company 28North American Communications Inc 72National Telecom USA Inc 117Operator Communications Inc (Oncor) 364 Group 1 Totals and Index 581 71 82

Cleartel Communications Inc 99Communication TeleSystems International (Worldxchange) 102US Osiris Corporation 29One Call Communications Inc (OPTICOM) 413 Group 2 Totals and Index 643 171 38

Network Operator Services Inc 50American Network Exchange Inc (AMNEX) 150Conquest Operator Services Corp 44USLD Communications Corp 78 Group 3 Totals and Index 322 164 20

Intellicall Operator Services Inc 32WorldCom Inc 105MCI Communications Corporation 55ATampT Corp 63 Group 4 Totals and Index 255 7024 1

Totals and Index All Groups 1801 7430 02

Groups 1-4 listed above include only those companies that filed Universal Service Forms

Note 1 Less than 05 complaints per million dollars of OSP revenue

Billing AgentsRanked by Complaints

Billing Concepts Corp 1041OAN Services Inc 502Integretel 78

Other CompaniesRanked by Complaints

Polar Communications Corp 56ASC Telecom Inc 42Teltrust Inc 26

Companies Served More Than 25 OSP Complaints in 1997

47FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

Abbr Company

ALLTEL ALLTEL CorporationAMNEX American Network Exchange IncAmeritech Ameritech CorporationAtlas Atlas Communications LtdAxces Axces Telecommunications IncATampT ATampT Corp

Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBrittan Brittan Communications Inc

Cable amp Wireless Cable amp Wireless PLCCincinnati Bell Cincinnati Bell IncCitizens Citizens Utilities CompanyCleartel CleartelCommunicationsCoast International Coast International IncCoastal Telephone Coastal Telecom Limited CompanyCompanyConquest Conquest Operator Services Corp

EqualNet EqualNet CorporationFrontier Frontier CorporationGE Exchange GE Capital Communication Services CorpGroup L D Group Long Distance IncGTE GTE CorporationHome Owners Home Owners Long Distance IncIntellicall Intellicall Operator Services Inc

LDC LDC Telecommunications IncLDM LDM Systems IncLD Services Long Distance Services Inc (Michigan)(Michigan)LD Services Long Distance Services (Virginia) -- a Fletcher(Virginia) Company

ABBREVIATIONS

to Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs

Guide

48 COMMON CARRIER SCORECARD REPORT

Guideto Abbreviations of CompanyNames Used in ScorecardAppendices Chartsand Graphs(Continued) Abbr Company

MCI MCI Communications CorporationNatrsquol Telcom National Telecom USA IncNetwork Network Operator Services IncN American North American Communications Inc

Oncor Operator Communications IncOperator Services Operator Services CompanyOPTICOM One Call Communications IncPilgrim Pilgrim Telephone IncPreferred Carrier Preferred Carrier Services Inc

QCC QCC IncSBC SBC Communications IncSNET Southern New England Telecommunications

CorpSprint Sprint CorporationSprint (United) Sprint Corporation

Tel-Save Tel-Save IncTrans National Trans National Telephone (Business Discount(Business Discount Plan)Plan)

USLD USLD Communications CorpUS Osiris US Osiris CorporationU S WEST U S WEST Inc

VarTec VarTec Telecom IncWinStar WinStar Gateway Network IncWorldCom WorldCom IncWorldxchange Communications TeleSystems International

ABBREVIATIONS

49FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

CoCmC

How to file a complaint with the FCC regarding telephone-related issues Away-from-home calls Hang up on high public telephone rates Cramming Unauthorized misleading or deceptive charges placed on consumersrsquo telephone bills Slamming Any practice that changes a telephone subscriber rsquos preferred telephone company without the subscriberrsquos knowledge or consent 900 number pay-per-call and other types of telephone information services Unsolicited telephone marketing calls and faxes The FCCrsquos interstate access charge system The FCCrsquos universal service support mechanisms Taxes and other charges on your telephone bill Telephone toll fraud Recording telephone conversations

Calls made from payphones

CONSUMER INFORMATION

Check Out our consumer information on telephone-related issues

Information About Local And Long Distance Telephone Companies

Check out the FCC-State Link Homepage athttpwwwfccgovccbstats

The Internet

The above consumer information is available through

Fax-on-Demand

Dial (202) 418-2830 From the main menu select the indices option Then select the factsheet option for a list of fact sheets and document numbers

Calling the following FCC telephone numbers

National Call Center toll-free at 1-888-225-5322Telecommunications Device for the Deaf (TTY) toll-free at 1-888-835-5322Office of Public Affairs Public Service Division at (202) 418-0200Consumer Hotline of the Enforcement Division Common Carrier Bureau at (202) 632-7553

Browse and download the consumer information listed above from the World Wide Web athttpwwwfccgovccbconsumer_news

50 COMMON CARRIER SCORECARD REPORT

Stay On Top

Of YourTelephone Charges

$ $$ Carefully review your telephone bill every month

Look for company names you do not recognize charges forcalls you did not make and charges for services you didnot authorize

Immediately call any company that charged you for callsyou did not make or services you did not authorize

Ask the company to explain the charges and request abilling adjustment for incorrect charges

The name of the company and the telephone number to callabout billing questions should be included with yourtelephone bill This information is often at the top of thepages listing the charges for each company

If the company responsible for the charges does not suffi-ciently respond to your concerns ask your local telephonecompany or the billing company what the procedure is forremoving incorrect charges from your bill

Carefully read all forms and promotional materialsincluding the fine print before signing up for telephoneservices

Telephone companies compete for your telephone businessUse your buying power wisely and shop around

Ask each company you contact to explain any discount callingplans it provides to consumers

Be sure to ask about any restrictions that apply to discountcalling plans so that you can determine whether the planwill save you money Also be sure to ask the company if itcharges its customers minimum monthly charges or other typesof monthly charges

If you think that a companyrsquos charges are too high or thatits services do not meet your needs contact other compa-nies and try to get a better deal

CONSUMER INFORMATION

Tips That Can Save You Money

51FEDERAL COMMUNICATIONS COMMISSION bull WASHINGTON DC

bull The date(s) of the incidents in-volved with the complaint

bull The names and addresses of allthe companies involved with thecomplaint

bull The names and telephone num-bers of the company employees youtalked with in an effort to resolve thecomplaint and the dates you spokewith them

bull Copies of the telephone bills list-ing the disputed charges The dis-puted charges should be circled onthe copies of the bills

bull Copies of correspondence re-ceived from the companies involvedwith the complaint and from stateor federal agencies you contacted inan effort to resolve the complaint

bull Copies of other documents in-volved with the complaint

bull For complaints about operatorservice providers you should col-lect the information listed on page9 in the How to File Complaints sec-tion of this Scorecard

CONSUMER INFORMATION

Consumer Notes

RememberTo Collect the Following Information AboutProblems with Your Telephone Service andto Take Notes

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