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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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