Common Carrier Scorecard - Federal …...Common Carrier Produced by the Federal Communications Commission Washington, D.C. Providing consumers and the industry with relevant information

Common Carrier

Produced by the Federal Communications Commission ● ● ● ● ● Washington, D.C.

Providing consumers and the industry with relevant information about telephone-related services

DecemberDecemberDecemberDecemberDecember 19971997199719971997

Federal Communications Commission, Washington, D.C. Common Carrier Bureau

Enforcement and Industry Analysis Divisions

Scorecard

FCC Consumer Complaint Statistics

Consumer Information About

ScorecardScorecardScorecardScorecardScorecard

The Common Carrier Scorecard Reportis available through:

Internet

Browse and download the Scorecard from the World Wide at:http:/www.fcc.gov/Bureaus/Common_Carrier/Reports/score_card_97.html

Fax-on-DemandCall (202) 418-2830 and select Document Number 6726.

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1FEDERAL COMMUNICATIONS COMMISSION • WASHINGTON, D.C.

About The ScorecardAbout The ScorecardAbout The ScorecardAbout The ScorecardAbout The Scorecard

slamming and the high ratescharged by some operator serviceproviders.

The third section of the Scorecardanalyzes 1996 consumer com-plaint and inquiry trends. Dur-ing 1996, the Consumer Protec-tion Branch processed 24,837consumer telephone calls and35,095 written consumer com-plaints and inquiries. Consum-ers contact the Branch to obtaininformation, to resolve a com-plaint, or to express their opin-ions on telecommunications is-sues. FCC decision-makers re-view information provided byconsumers and use that informa-tion to develop policies and rulesthat govern the practices of regu-lated companies and protect theinterests of consumers.

While American consumers makebillions of telephone calls everyyear, the FCC received less thanone telephone-related consumercomplaint for every two milliontoll calls made.

Robert W. SpanglerActing ChiefEnforcement DivisionCommon Carrier Bureau

Peyton L. WynnsChiefIndustry Analysis DivisionCommon Carrier Bureau

This third edition of the CommonCarrier Scorecard was preparedby the Enforcement and IndustryAnalysis Divisions of the FCC’sCommon Carrier Bureau.

The Scorecard shows that during1996 the top three categories ofconsumer complaints and inquir-ies processed by the EnforcementDivision’s Consumer ProtectionBranch were unauthorized con-versions of telephone service, apractice known as “slamming”;900 number pay-per-call andother types of information ser-vices; and operator service pro-viders’ rates and practices.

The first section of the Scorecardprovides an in-depth look into900 number pay-per-call andother types of information ser-vices, how to avoid scams, andwhat actions consumers can takeif problems occur. The secondsection includes informationabout the actions the FCC hastaken to protect consumers from

The Scorecard provides consumer information about telephone-related issues and perfor-mance information for individual telephone companies and for the common carrier indus-try as a whole. Consumers can use this information to make informed decisions aboutwhich companies and services they want to use. The common carrier industry can use thisinformation to develop solutions to industry problems identified in consumer complaints.

In absolute numbers, the largestcompanies generally received themost written complaints. Afteradjusting for company size, theratio of complaints filed againstthe largest companies was far be-low some of their smaller com-petitors.

The Scorecard also shows thatcompanies can significantly re-duce consumer complaints filedagainst them by: dealing withvalid consumer complaintsquickly without “passing thebuck”; 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

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18-26Trends in ConsumerComplaints and Inquiries

14-17A Quick Look at Slam-ming and Operator ServiceProviders

Contents

27-33 Appendices34 Guide to Abbreviations35 Consumer Information

20 Consumer Complaints and In-quiries Reach the FCC in Sev-eral Ways

Consumers Call the ConsumerProtection Branch for Informa-tion on a Variety of Issues

Issues Raised in Written Con-sumer Complaints and Inquiries

Complaint Ratios for Long Dis-tance Companies Served withMore Than 600 Complaints

Complaint Ratios for Long Dis-tance Companies Served withMore Than 250 Slamming Com-plaints

Complaint Ratios for Compa-nies Served With More Than 30Operator Service ProviderComplaints

Complaints Served on LocalTelephone Companies

21

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3-133-133-133-133-13 An In-Depth Look at900 Number Pay-Per-Call andOther Types of Telephone In-formation Services

The Federal CommunicationsCommission’s Rules

5

7 The Federal Trade Commission’s

900 Number Rule

Sound Too Good To Be True?Quick Tips That Can Save You

Money

Complaints About 900 NumberPay-Per-Call and Other Types ofInformation Services

8

10

A Quick Look at Slamming

A Quick Look at Operator Ser-vice Providers

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Information services offer telephone callersthe opportunity to obtain a wide variety oftelephone programs that provide recorded orlive information and entertainment. Ex-amples of information services include medi-cal, stock market, sports, and product infor-mation. Also available are so-called “adult”services, “chat” lines and psychic advice.

An In-depth Look At

TELEPHONE INFORMATION SERVICES

Many of these information services arehighly valued by consumers. However,complaints involving information serviceswere the second highest category of tele-phone-related consumer complaints pro-cessed during 1996 by the Consumer Pro-tection Branch of the Common CarrierBureau’s Enforcement Division.



The FCC’s rules protect consum-ers from unwanted charges for900 number pay-per-call andother types of information ser-vices and disconnection of theirlocal and long distance telephoneservice for failure to pay certaintypes of information servicecharges.

The Federal Trade Commission(FTC) also regulates the pay-per-call industry and has created the900 Number Rule to protect therights of consumers regardingpay-per-call transactions.

It is important to understand howinformation services are providedand the structure of the informa-tion services industry. Educatingyourself on these issues will en-able you to protect your rights andcontact the proper agency if prob-lems occur.

Pay-Per-Call andInformation Services

Consumers may be confused bythe terms “pay-per-call” and “in-formation services” because theterms are often used interchange-ably.

Pay-per-call is a specific type ofinformation service. Under fed-eral law, pay-per-call services arethose information services thatare 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.

In contrast, information servicesis a broad term that includes 900number pay-per-call services andservices that are offered by dial-ing numbers other than 900 num-bers.

Call Charges

Consumers generally call an ad-vertised telephone number to re-ceive a pay-per-call or anothertype of information service.

Charges for both pay-per-call andother types of infomation servicecalls are typically billed to the in-dividual or business responsiblefor the telephone line from wherethe call was placed, and often areincluded on that party’s monthlytelephone bill.

Industry Structure

The following types of entitiescan be involved in providing andbilling for information services:

Information Providers

Information providers design,produce, price, and advertise pay-per-call and other types of infor-mation services.

Long Distance and Local Tele-phone Companies

Information providers may pur-chase communications servicesfrom long distance telephonecompanies to transmit their infor-mation services to callers.

Long distance telephone compa-nies transmitting 900 number ser-

vices may also offer informationproviders billing and collectionservices in conjunction with pay-per-call transmission.

Long distance telephone compa-nies either directly bill consum-ers for information service callsor subcontract with local tele-phone companies to place infor-mation service charges onmonthly telephone bills that areissued by the local telephonecompanies.

Service Bureaus

An information provider mayobtain transmission and billingservices from an entity called aservice bureau.

Service bureaus act as middlemenbetween information providersand long distance companies,obtaining communications andbilling services from a long dis-tance company on behalf of an in-formation provider. Service bu-reaus may also provide other ser-vices to individual informationproviders, including provision ofactual information programs,management services, and billingand collection of charges

Independent Billing Companiesor Collection Agencies

Finally, an information providermay employ an independent bill-ing company or collection agencyto attempt to collect informationservice charges that either are notbilled by a telephone company orhave been removed from a phonebill.

AN IN-DEPTH LOOK


The FCC’s 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 FCC’s 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 “presubscription or com-parable arrangement.”

A presubscription or comparablearrangement may be a preexist-ing contract by which the callerhas “subscribed” to the informa-tion service -- or may be thecaller’s authorization to bill an in-formation service call to a pre-paid account or to a credit, debit,charge, or calling card number.

Toll-Free Numbers

The FCC’s rules protect consum-ers from unexpected charges forcalls placed to toll-free numbers.

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900 Number Blocking Service

The FCC’s 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 FCC’s rules prohibit tele-phone companies from discon-necting a telephone subscriber’slocal or long distance telephoneservice due to the subscriber’sfailure to pay 900 numbercharges, charges for pre-sub-scribed information services, ordisputed charges for interstate in-formation services provided on acollect basis.

Bills for Information Services

The FCC’s rules require tele-phone companies that bill con-sumers for interstate pay-per-calland presubscribed information

U.S

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e of Federal Regulations

The FCC’s rules generally pro-hibit the use of 800 numbers, orany other number advertised orwidely understood to be toll-free,to charge callers for informationservices.

Under the FCC’s 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-count, or through a debit, credit,or calling card.

When a consumer calls a toll-freenumber, the information providercannot call the consumer backcollect for the provision of audioor data information services,products, or simultaneous voiceconversation services such as chatlines. Also, callers to toll-freenumbers may not be connected to900 pay-per-call numbers.

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The FCC regulates United States telephone companies that are involved intransmitting and billing interstate pay-per-call and other types of information services.


LLLLLate 1980�sate 1980�sate 1980�sate 1980�sate 1980�s Competitive 900 number information services werefirst offered to telephone subscribers.

19911991199119911991 The FCC first adopted rules governing interstatepay-per-call services to address complaints fromconsumers about widespread abusive practices in-volving 900 number services.

19921992199219921992 The Telephone Disclosure and Dispute ResolutionAct -- known as the TDDRA -- was enacted. TheTDDRA is a federal law that required the FCC andthe Federal Trade Commission to adopt rules to pro-tect consumers from fraudulent and deceptive prac-tices and to promote the development of legitimate900 number pay-per-call services. The TDDRA alsomandated explicit restrictions on the use of 800 andother toll-free numbers to provide information ser-vices.

19931993199319931993 The FCC amended its rules to comply with the re-quirements of the TDDRA.

19961996199619961996 Another federal law -- the Telecommunications Actof 1996 -- increased the TDDRA’s restrictions onthe use of toll-free numbers to charge callers forinformation services. In addition, this statute re-moved a provision in the TDDRA that has been usedto justify arrangements by which consumers arecharged tariffed transmission rates for supposedlyfree information services.

The FCC amended its rules to comply with the re-quirements of the 1996 Telecommunications Act andproposed additional rules designed to guard againstcircumvention of its rules governing the use of toll-free numbers.

services 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 consumers’rights and responsibilities with re-spect to payment of informationservice charges.

FCC Enforces Federal Law andIts Rules

In April 1997, the Common Car-rier Bureau (Bureau) issued aNotice of Apparent Liability forForfeiture (NAL) to TelephonePublishing Corporation andTelemedia Network, Inc., d/b/aInternational Telnet -- collec-tively referred to as InternationalTelnet. The Bureau found in theNAL that International Telnetfailed to prohibit, by tariff or con-tract, the use of 800 numbers in amanner that resulted in the call-ing party being called back col-lect for the provision of informa-tion services.

The Bureau issued the NAL in theamount of $49,000 for Interna-tional Telnet’s apparent willful orrepeated violation of the Tele-phone Disclosure and DisputeResolution Act and the FCC’s in-terstate information service rules.

AN IN-DEPTH LOOK

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The FTC enforces theFederal Trade Commis-sion Act which prohibits

all deceptive and unfair tradepractices. The FTC also enforcesseveral other statutes which tar-get specific unfair and deceptivepractices. Under authority ofthese laws, the FTC has createdspecific regulations designed toprotect the rights of consumersin areas such as credit card,telemarketing, and pay-per-calltransactions.

The FTC’s 900 Number Rule isan example of such regulation. Itrequires among other things that:

Advertisements for 900 numberpay-per-call services must clearlydisclose the cost of a call. Televi-sion advertisements must includeboth audio and video disclosures.

A free introductory message or“preamble” must begin each 900number program if total chargesfor a call are greater than twodollars. The preamble must in-clude a brief description of theservice; the name of the informa-tion provider; the cost of the call;and a statement that callers un-der 18 must obtain parental per-mission.

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900 Number Rule900 Number Rule900 Number Rule900 Number Rule900 Number RuleThe FTC also regulates the pay-per-call industry. Its rules govern

information providers, service bureaus, and billing entities.

After the preamble is complete,callers must be given three sec-onds to hang up without beingcharged for the call.

Parties that bill consumers forpay-per-call charges or thathandle consumer inquiries mustfollow specified procedures inhandling disputes. Pay-per-callbilling statements must include alocal or toll-free number whichconsumers may call about pay-per-call charges.

Consumers wishing to challengea pay-per-call charge under theFTC’s rule should notify the com-pany listed on the bill within 60days after the first statement con-taining a disputed charge wassent.

Like the FCC’s rules, the FTC’srule also prohibits charging forcalls to 800 or other toll-freenumbers without a validpresubscription agreement.

Currently, the FTC is conductinga review of its 900 Number Ruleto determine whether it has beeneffective in curbing abuses asso-ciated with 900 number services,and whether to expand the scopeof the rule to cover audio infor-mation and entertainment ser-vices accessed by dialing tele-

phone numbers that begin withnumbers other than “900.”

In connection with its review, theFTC sought public comment andheld a public workshop confer-ence to address specific issues,such as billing and collectionabuses and ways to extend thescope of the rule to services likeinternational information ser-vices.

During the course of the ruleworkshop, the FTC also soughtcomment on ways to modify itsrules to provide consistency in theregulation of the pay-per-call in-dustry. The FTC will continueto seek comment in connectionwith its rulemaking efforts in thepay-per-call area.

Consumers may contact the FTCto get more information about itsregulations. FTC brochures re-garding 900 numbers, 800 num-bers, international informationservices, fair debt collection, andfair credit billing may be obtainedby writing to the Federal TradeCommission, Public ReferenceBranch, Drop H240, Washington,D.C. 20580 -- or by calling TheConsumer Response Center at(202) 326-3128.



Sound TooGood To BeTrue?Like magic. A simple telephone callcan put sports news at your fingertips or provide instant access to apsychic, but such information ser-vices are rarely free.

Here are some quick tips thatcan save you money.

❐ Carefully review your tele-phone bill every month. Look forcompany names you do not rec-ognize and for charges for infor-mation service calls you did notplace or authorize. If you iden-tify any billing problems, imme-diately call the companies listedon the bill. Ask the companies toexplain the charges and request abilling adjustment for incorrectcharges.

❐ Be aware that some informa-tion providers may employ an in-dependent billing company or acollection agency to pursue col-lection of information servicecharges removed from your tele-phone bill.

❐ Educate children and other in-dividuals who make telephonecalls from your telephone lineabout the charges for calls placedto information services.

❐ Protect yourself against unau-thorized 900 number calls placedfrom your telephone line. Sub-scribe to your local telephonecompany’s 900 number blockingservice if you do not want to in-cur these charges.

❐ Carefully read advertisementsfor information services. Someadvertisements for informationservices do not disclose thecharges for calling the advertisednumbers.

❐ Listen to the preamble or in-troductory message when calling

a 900 number or other type of in-formation service number. Im-mediately hang up if you are notinterested in the service or do notwant to pay any charges for thecall.

❐ Be suspicious of offers forfree calls or services. If it soundstoo good to be true -- it probablyis. 900 number services alwaysinvolve charges to the caller --even if you are calling to claim a“free” prize. Other types of in-formation services are rarely freeeven if they are provided overtoll-free numbers.

❐ Think twice before requestinga return call. Some informationservice companies use an optionfor callers to receive informationby requesting a return call. If you

AN IN-DEPTH LOOK


select this option and the call isreturned, you may be chargedfor a collect call.

❐ Exercise caution when ac-cepting an instant calling card.You may dial an advertisednumber and be offered a “call-ing card” that can be used im-mediately to access the adver-tised information. These call-ing cards have numerical codes-- sometimes based on the tele-phone number of the line fromwhich the call was placed -- thatare used to charge callers for theinformation service call.

❐ Don’t call telephone numbers with 809, 758 or 664 area codes ornumbers beginning with 011 unless you want to place a call to an-other country. Some information providers do not explain in theiradvertisements that calls placed to these numbers will be billed asinternational toll calls or possibly “calling card” calls.

❐ Block the placement of long distance or international calls. Con-tact your local and long distance companies and ask whether it ispossible to block the placement of long distance or international callsfrom your telephone line. Before requesting this type of service,consider whether you need to place calls to friends, family membersor businesses in other states or countries.

❐ Be wary of advertisements encouraging you to call a toll-freenumber to receive an information service. Some information pro-viders advertise a toll-free number but then ask you to enter a seriesof numbers before hearing the advertised information. If you enterthese numbers, you may be completing a long distance telephonecall -- often to another country. This is not a lawful practice.

In these types of schemes, the information service is supposedly free.Callers, however, are charged long distance or international toll

charges to cover the transmission of their calls to the “free” in-formation service.

These types of service arrangements rely on cooperation betweena telephone company and an information provider or informa-tion services advertiser, with the telephone company sharing themoney collected for its toll charges with the information provideror advertiser.

In some instances, United States telephone companies may be know-ingly involved and the FCC can take action against them. In othercases, the United States telephone company may be an unwittingvictim of an arrangement between an information provider and aforeign entity that is not subject to the laws of the United States.

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Check Your Telephone Bill

The telephone bill listing the in-formation service charges shouldinclude the telephone number tocall to discuss questions you haveabout your bill or the servicesprovided.

About 900 Number Pay-Per-Calland Other Types of Information Services

Before you file an information services complaint witha regulatory agency, contact the telephone company,

information provider or othertype of company providing, orbilling for, the service. Thecompany you contact may re-solve your problem. If this ap-proach does not provide satis-factory results, this section ofthe Scorecard will guide youthrough the process for filing acomplaint.

Complaints

Know Your Rights

You should be aware that even ifa telephone company removes in-formation service charges fromyour telephone bill, it may be le-gal for an information providerto attempt to collect thosecharges either on its own orthrough a collection agency.

Some consumers who have beenbilled for information servicesreport that they were told thatunder federal law or policy tele-phone subscribers are respon-sible for all calls placed fromtheir telephone line.

While such a statement is gen-erally true when charges are as-sessed for communications ser-vices -- such as charges for longdistance telephone calls -- thereis no federal law, rule, or policythat automatically and absolutelyholds a consumer responsible forinformation service chargesbilled to their telephone line.

You may wish to contact the Fed-eral Trade Commission to learnabout your rights regarding col-lection of charges removed fromyour telephone bill.

AN IN-DEPTH LOOK


The Consumer Protection Branchof the Common Carrier Bureau’sEnforcement Division assigns an“IC” file number to eachconsumer’s complaint. This filenumber is included in correspon-dence responding to the com-plaint.

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

The Branch directs each com-pany to:

■

■

■ File a written response to thecomplaint issues with theFCC. Usually this responsemust be filed with the FCCwithin 30 days from the datethe Branch sent the complaintto the company; and

■ Send a copy of the responseto the consumer who filed thecomplaint.

After receiving the written re-sponses, Branch staff mem-bers review the complaint 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 noti-fication to the consumer whofiled the complaint when theBranch closes the complaint file.

We ask consumers to :

■ UNDERSTAND that it takes timeto thoroughly review the is-sues raised in individual com-plaint files.

■ WAIT AT LEAST 30 DAYS after re-ceiving written responses to theissues raised in their complaintbefore contacting the Branchfor status information.

■ Use their “IC” complaint filenumber when calling or writ-ing the Branch for the status orother information about theircomplaint.

For Complaints InvolvingMore Than One Agency

You may discover that your com-plaint involves more than oneagency. If this is the case, wesuggest you address one com-plaint letter to all of the appro-priate agencies and send copiesto each. Be sure to include cop-ies of bills and other documentsrelating to your complaint.

This section of the Scorecard in-cludes a list of information youmust provide when filing a com-plaint with the FCC.

You should contact other agenciesfor instructions on how to file acomplaint with them if you arenot sure what information is re-quired.

Also ask the agencies how theyprocess consumer complaints.Each agency uses different pro-cedures because the laws andrules which give them authorityto act on your complaint vary.

FFFFFiling A Complaint With the Piling A Complaint With the Piling A Complaint With the Piling A Complaint With the Piling A Complaint With the Proper Rroper Rroper Rroper Rroper Regulatoregulatoregulatoregulatoregulatory Agencyy Agencyy Agencyy Agencyy Agency

Save Time

Don’t delay action on your com-plaint by filing with the wrongregulatory agency. A quick lookat the chart in this section of theScorecard will show you the cor-rect agency to contact.

COMPLAINTS ABOUT TELEPHONE INFORMATION SERVICES

Send a letter to the consumerwho filed the complaint ac-knowledging receipt of thecomplaint;

Review all records and otherinformation relating to thecomplaint;

FCC ProceduresFor ProcessingTelephone-related Complaints


Filing A Complaint With the Piling A Complaint With the Piling A Complaint With the Piling A Complaint With the Piling A Complaint With the Proper Rroper Rroper Rroper Rroper Regulatoregulatoregulatoregulatoregulatory Agencyy Agencyy Agencyy Agencyy Agency

Complaints about the practices of information providers, service bureausand billing entities generally should be directed to the Federal Trade Com-mission at the following address: Consumer Response Center, Federal TradeCommission, Drop H285, 600 Pennsylvania Avenue, N.W., Washington,D.C. 20580.

Filing a Complaint With YourState Regulatory Agency

Filing a Complaint With TheFederal Trade Commission

Topic Issue Where To Go For Informationand to File Complaints

You can obtain the telephone number and address for your state regulatoryagency from your local or state consumer offices or the government sec-tion of your telephone directory. The telephone number for your stateregulatory agency can also be found on the FCC’s web site athttp://www.fcc.gov/ccb/consumer_news/state_puc.html

AN IN-DEPTH LOOK

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Information YInformation YInformation YInformation YInformation You Must Include In You Must Include In You Must Include In You Must Include In You Must Include In Your Complaint Lour Complaint Lour Complaint Lour Complaint Lour Complaint Letteretteretteretteretter

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Filing a Complaint with theFederal CommunicationsCommission

✔ A brief description of the complaint.

✔ The telephone number or numbers involved with the complaint.

✔ The names and addresses of your local telephone company and all other companies involved with the complaint.

✔ The names and telephone numbers of the company employees you called in an effort to resolve the complaint, and the dates that you spoke with them.

✔ The date or dates of the incidents involved with the complaint.

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

✔ Copies of the telephone bills listing the disputed charges. The disputed charges should be circled on the copies of the bills.

✔ Copies of correspondence received from the companies involved with the complaint and from state or federal agencies you con- tacted in an effort to resolve the complaint.

✔ Copies of other documents involved with the complaint.

✔ Your Name and Company Name (where appropriate)Street Address or Post Office BoxCity, State, Zip CodeDaytime telephone number (including Area Code)

Complaints must be filed with theFCC in writing. There is no spe-cial form to fill out to file a com-plaint with the FCC. Simply senda typed or legibly printed letterin your own words to:

Federal CommunicationsCommissionCommon Carrier BureauConsumer ComplaintsMail Stop Code 1600A2Washington, D.C. 20554

COMPLAINTS ABOUT TELEPHONE INFORMATION SERVICES


SlammingSlammingSlammingSlammingSlammingandandandandandOperatorOperatorOperatorOperatorOperatorSerSerSerSerServicevicevicevicevicePPPPProvidersrovidersrovidersrovidersroviders

This Section of the Scorecard provides quick-look information about actions the

FCC has taken to protect consumers from slamming and the high rates charged

by some operator service providers.

Detailed information about the FCC’s slam-ming rules and policies is included inthe Fall 1996 issue of the Com-mon Carrier Scorecard andin a consumer brochure en-titled Been Slammed? Pro-tect Your Rights.

Detailed information aboutthe FCC’s OSP rules is in-cluded in a consumerbrochure entitledPublic Phone Us-ers Beware: Knowyour Operator Ser-vice Provider Be-fore Making CallsFrom Public Tele-phones.

You can browseand downloadthese documentsfrom the FCC’sWeb Site. Accessinformation is in-cluded on the last pageof this Scorecard.

You can also request one ofthe FCC offices listed on the lastpage of this Scorecard to send youa copy of these documents.

A QUICK LOOK



Proposed Additional ConsumerSafeguards

Slamming is a term used to describe any practice that changes a subscriber’s preferred telephone company without the subscriber’s knowledge or consent.

SLAMMIMG

SlammingSlammingSlammingSlammingSlamming

A subscriber’s preferred tele-phone company may not lawfullybe changed without his or her ex-press consent.

The FCC is committed to ensur-ing that a subscriber’s telephoneservice is not changed withouttheir express consent and hasadopted rules and policies to pro-tect consumers from slamming.The FCC has also proposed ad-ditional safeguards to protectconsumers from slamming.

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 Telecommunications Act of1996 substantially bolstered theCommission’s efforts to eliminateslamming. This federal law ex-panded the scope of the FCC’s au-thority over slamming-related is-sues to all telecommunicationscarriers, including local carriers.

The law provides that no telecom-munications carrier shall submitor execute a change in aconsumer’s selection of a pro-vider of telephone exchange ser-vice or telephone toll service,except in accordance with theFCC’s verification procedures.

The law also provides that anytelecommunications carrier thatviolates the FCC’s verificationprocedures and that collectscharges for telephone exchangeservice or telephone toll servicefrom a consumer shall be liableto the consumer’s 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 Commissionintervention and enforcement.

Some Facts You Need To KnowAbout Slamming

The Telecommunications Act of1996

The FCC has asked for commentfrom the public on issues relatedto implementation of this law andproposed additional safeguards toprotect consumers from slam-ming.

In a Notice of ProposedRulemaking released July 15,1997, the FCC asked for com-ment on issues such as whetherthe current procedures used toverify long distance carrierchanges should be strengthened;whether unauthorized carriersshould be liable for any premi-ums, such as frequent flier miles,that slammed consumers wouldhave received from their autho-rized carriers; and whetherslammed consumers should be li-able for any unpaid charges as-sessed by unauthorized carriers.

The FCC will review the mate-rial filed in this rulemaking andwill issue additional consumerprotection rules after that reviewis completed.

16 COMMON CARRIE R 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 Bureau’sEnforcement Division’s investi-gations of consumer slammingcomplaints continue to lead to aseries of enforcement actionsagainst responsible carriers.

Nine companies accused of slam-ming have entered into consentdecrees and agreed to make pay-ments to the United States Trea-sury totalling $1,245,000; fiveNotices of Apparent Liabilityhave been issued for apparentslamming violations, with com-bined proposed forfeiture penal-ties of $400,000; and two Noticesof Forfeiture have been issued,with combined forfeiture penal-ties of $160,000.

The Commission has also ordereda hearing to determine whetherthe operating authority of a groupof commonly-owned companiesshould be revoked due to thenumber and nature of slammingcomplaints.

FCC Slamming Enforcement ActionsFCC Slamming Enforcement ActionsFCC Slamming Enforcement ActionsFCC Slamming Enforcement ActionsFCC Slamming Enforcement Actions

A QUICK LOOK

Company NameCompany NameCompany NameCompany NameCompany Name P P P P Proposed Froposed Froposed Froposed Froposed Forororororfeiture Amountfeiture Amountfeiture Amountfeiture Amountfeiture AmountHeartline Communications, Inc. $200,000Long Distance Services, Inc. (Troy, Michigan) 80,000Minimum Rate Pricing, Inc. 80,000Target Telecom, Inc. 40,000TELCAM, Telecommunications 40,000 Company of the Americas

Notices of FNotices of FNotices of FNotices of FNotices of Forororororfeiturefeiturefeiturefeiturefeiture

Company NameCompany NameCompany NameCompany NameCompany Name F F F F Forororororfeiture Amountfeiture Amountfeiture Amountfeiture Amountfeiture AmountExcel Telecommunications, Inc. $80,000Long Distance Services, Inc. (Virginia) 80,000

Consent DecreesConsent DecreesConsent DecreesConsent DecreesConsent Decrees

Company NameCompany NameCompany NameCompany NameCompany Name V V V V Voluntaroluntaroluntaroluntaroluntary Py Py Py Py Payments to theayments to theayments to theayments to theayments to the U U U U U.S.S.S.S.S. T. T. T. T. Treasurreasurreasurreasurreasury*y*y*y*y*

AT&T Corporation $30,000Cherry Communications, Inc. 500,000Home Owners Long Distance, Inc. 30,000LCI International Worldwide Telecommunications (LCI) 15,000Matrix Telecom, Inc. 30,000MCI Telecommunications Corp. 30,000Nationwide Long Distance, Inc. 30,000Operator Communications, Inc. d/b/a Oncor 500,000Winstar Gateway Network, Inc. 80,000

Other ActionsOther ActionsOther ActionsOther ActionsOther Actions

The Commission has proposed to revoke the operating authority of thefollowing group of carriers owned and/or operated by Daniel Fletcher:CCN, Inc.; Church Discount Group, Inc.; Donation Long Distance,Inc.; Long Distance Services, Inc.; Monthly Discounts, Inc.; MonthlyPhone Services, Inc.; and Phone Calls, Inc.

*The companies listed under Consent Decrees also voluntarilyagreed to provide additional consumer protections.

Notices of Apparent LiabilityNotices of Apparent LiabilityNotices of Apparent LiabilityNotices of Apparent LiabilityNotices of Apparent Liability


OPERATOR SERVICE PROVIDERS

Operator SerOperator SerOperator SerOperator SerOperator Service Pvice Pvice Pvice Pvice Providers (OSProviders (OSProviders (OSProviders (OSProviders (OSPs)s)s)s)s)

Facts About OSPs

OSPs provide long distance and,in some cases, local telephoneservice from public telephones.

Examples of the types of tele-phones served by OSPs includepay telephones or other types oftelephones available for con-sumer use located in hotels, mo-tels and hospitals.

Consumers placing calls awayfrom home often do not realizewhich telephone company theyare using.

The OSP serving a public tele-phone generally will handle a callif “0” is dialed before dialing anyother number. Also, some call-ing cards include the consumer’sentire telephone number as partof the calling card number. If thistype of calling card is used from

The vast majority of OSP consumer complaints filed with the FCC cite excessive rates and charges.

$Consumers placing calls away from homeoften do not realize which telephonecompany they are using. Don’tleave home before calling yourchosen long distance companyand obtaining instructions onhow to place calls through thatcompany from public telephones.

a public telephone, the OSP mostlikely will be able to bill the callat its rates.

The FCC has adopted rules to en-sure that OSP services are pro-vided to consumers in a fair andreasonable manner.

The FCC’s Rules

The FCC’s rules, for instance,guarantee you the right to placecalls through the long distancecompany that you want to use bydialing an access code such as an800 number, a local number thatbegins with 950, or a five-digitaccess number, known as a10XXX number.

The FCC’s rules also includeother consumer safeguards, suchas requiring each OSP to imme-diately disclose, upon request and

at no cost to the consumer, a quo-tation of its rates or charges for acall.

Proposed Additional ConsumerSafeguards

The FCC has asked for commenton additional safeguards to pro-tect consumers from high ratesfor away-from-home calls.

One of the proposed safeguardswould require OSPs to automati-cally disclose rate and other typesof information to consumers atthe beginning of an operator as-sisted call and before the call isconnected. This additional infor-mation would give a consumerthe opportunity to hang up onhigh rates and to use another com-pany to place their calls.


This section of the Scorecard describes trends in complaints and in-quiries processed during 1996 by the Consumer Protection Branchof the Common Carrier Bureau’s 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 complaint,or to express their opinions on important telecommunications issues. FCCdecision-makers review information provided by consumers and use that in-formation to develop policies and rules that govern the practices of regulatedcompanies and protect the interests of consumers.

TTTTTRENDS IN CRENDS IN CRENDS IN CRENDS IN CRENDS IN CONSUMERONSUMERONSUMERONSUMERONSUMERCOMPLAINTS AND INQUIRIESCOMPLAINTS AND INQUIRIESCOMPLAINTS AND INQUIRIESCOMPLAINTS AND INQUIRIESCOMPLAINTS AND INQUIRIES


T S REND

TRENDS


Companies can help con-sumers by:

● immediately resolving validconsumer complaints without“passing the buck”;

● providing better consumer in-formation about their services;

● improving their customer ser-vice programs; and maintainingbetter billing and service records.

Most of the FCC’s consumer correspondence about telephone-re-lated issues consists of complaints about the rates and/or practices oftelecommunications companies. A number of consumers filing com-plaints with the FCC about telephone-related issues indicate that theyhave already requested at least one of the companies involved withtheir complaint to resolve the problem -- and that their complaintswere not resolved by the companies.

Anaylsis of Written Consumer Complaints

The analysis of written complaints by company in this section andthe appendices of this Scorecard is based on consumer complaintsserved on companies by the Branch. The Branch serves a complaintby issuing an “Official Notice of Informal Complaint” to all compa-nies identified in the complaint that are within the FCC’s jurisdictionor that may, in the staff’s view, assist in the resolution of the com-plaint. Service of a complaint does not necessarily indicate wrong-doing by the served company.

Although the Branch served more 1,100 companies with complaintsduring 1996, approximately 85 percent of all the complaints wereserved on only 36 companies.

Appendix A to this Scorecard lists the 83 companies, including localtelephone companies, that were served with more than 50 complaintsduring 1996. These 83 companies were served with approximately96% of all the complaints served during this time period.

Appendix B lists the companies that were served with more than 100slamming complaints during 1996, and Appendix C lists the compa-nies served with more than 30 operator service provider complaints.

The appendices also show communications revenue and complaintratios. The complaint ratio is the number of complaints served, di-vided by the total communications-related revenues (measured inmillions of dollars of revenue).

Stay On Top

Of Your Telephone Charges

$$

TRENDS


Consumer Complaints and Inquiries Reachthe FCC in Several Ways

During 1996, the Consumer Protection Branch processed 24,837consumer telephone calls and 35,095 written complaints and inquir-ies. By comparison, during 1995 the Branch processed 38,117 con-sumer telephone calls and 25,482 written complaints and inquiries.The reduction in the number of consumers calling the Branch during1996 may be due to the launch of the FCC’s National CallCenter’stoll-free 1-888-225-5322 number (1-888-CALL-FCC).

The Branch received written complaints and inquiries from a varietyof sources. During 1996, approximately 93 percent, or 32,726, ofthe written complaints and inquiries were received directly from con-sumers. Approximately seven percent, or 2,369, of the complaintsand inquiries were sent to the FCC on behalf of consumers by mem-bers of Congress; the President; and various state, local and federalagencies.

Figure 1 1996

Consumer Complaints And Inquiries

24,837

1995

1996

1995Thousand

10

15

20

Written Consumer Complaints andInquiries

Consumer Telephone Inquiries

25

30

35

40

5

35,09538,117

25,482

TRENDS


The 24,837 consumers who called the Consumer ProtectionBranch’s Consumer Hotline during 1996 requested informa-

tion on a variety of issues. Figure 2 shows the types of infor-mation requested and the number of consumers who re-quested that information.

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

Under federal law and the FCC’s rules, consumers must send a written com-plaint to the FCC about telephone-related issues. The Branch generallycannot process a complaint that is received via a telephone call.

Slamming

Telephone Fraud

Disconnection of Telephone Service

900 Number Pay-Per-Call and Other Types Information Service Providers

How To File A Complaint With The FCCAbout Telephone-related Issues

Complaint Status

6,623

4,102

1,655

1,123

1,498

753

715

Other Issues

Operator Service Providers

1 2 3 4 5 6 7 8 9

Thousands

8,368

Figure 2

TRENDS


Issues Raised in Written ConsumerComplaints and InquiriesThe Consumer Protection Branch processed 9,613 more writtencomplaints and inquiries during 1996 than 1995.

Figure 3

Slamming

Other

13%

39%

12%Operator Service Providers

900 NumberPay-Per-Calland Other InformationServices 36%

The Consumer Protection Branch processes written complaints andinquiries about a number of telephone-related rate and service is-sues.

Most consumer complaints and inquiries fall into a few broad cat-egories. The relative volume for specific categories changes overtime, but the total number of written complaints and inquiries hasbeen rising rapidly for several years.

Figure 3 shows that of the 35,095 written complaints and in-quiries processed by the Branch in 1996:

36 percent, or 12,795, involved slamming issues;

13 percent, or 4,621, involved 900 number pay-per-callservices, other types of interstate information services,and international information services; and

12 percent, or 4,132, involved interstate Operator ServiceProvider (OSP) rates and services.

The remaining 39 percent, or 13,547, of the complaintsand inquiries processed by the Branch involved issues suchas: complaints that were not within the FCC’s jurisdic-tion and that were forwarded by the Branch to other fed-eral and state agencies; interstate and international ser-vices and rates; unsolicited telephone calls; unsolicitedadvertisements sent to fax machines; and the marketingand advertising practices used by some regulated compa-nies.

By comparison, of the 25,482 written complaints and inquiries pro-cessed by the Branch during 1995, 34 percent, or 8,761, involvedslamming issues; 18 percent, or 4,487, involved OSP rates and ser-vices, including 642 complaints and inquiries involving intrastateOSP services and rates; 11 percent, or 2,798, involved 900 numberpay-per-call and other types of information services; and 37 percent,or 9,436, involved other issues.

TRENDS


Complaint Ratios for Telecommunications CompaniesServed With More Than 600 Complaints(Except Local Telephone Companies)

NOTE: Service of a complaint does notnecessarily indicate wrongdoing by theserved company.

Figure 4

The information displayed in Figure 4:

0

5

10

15

20

25

30

AT&T

SprintM

CI

Wor

ldCom

OAN

Billing

Inform

ation

Inte

gret

el

OPTICOM

AMNEX

L. Dist

ance

(VA

)

Heartl

ine

Equal

Net

Opera

tor C

omm

Wins

tar

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MP

LA

INT

S P

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MIL

LIO

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LA

RS

TRENDS

■ Shows the complaint ratios for telecommunications companiesserved with more than 600 complaints during 1996, except localtelephone companies. The complaint ratios for the local exchangecarriers are displayed in Figure 7.

■ Includes only those companiesserved with more than 600 com-plaints and their relative rank --based on complaints scaled bycompany size. (Appendix A tothis Scorecard lists the compa-nies served with more than 50complaints during 1996.) All ofthe largest telecommunicationscompanies (AT&T, MCI, Sprintand WorldCom) are included inthis group because sheer sizemakes it unlikely that these largecompanies will receive fewerthan 600 complaints annually.

International Telemedia Associ-ates, a billing agent, was servedwith 978 complaints in 1996. Acomplaint ratio for this companyis not included in Figure 4 be-cause the company declined toprovide billing revenue data tothe FCC.

■ Shows that the largest companies have complaint ratios that arebelow the group average. In contrast, some smaller companies havecomplaint ratios that are many times higher than the group average.In absolute terms, several of the largest companies were served withthe most complaints. Several smaller companies were also servedwith a large number of complaints.


The four largest long distance companies had the lowest slamming complaintratios — ranging from .05 to .12.

Complaint Ratios for Long Distance Companies Servedwith More Than 250 Slamming Complaints


Figure 5

TRENDS

During 1996 the highest category of consumer complaints and in-quiries processed by the Consumer Protection Branch was the unau-thorized conversion of telephone service -- a practice known as “slam-ming.” The second section of this Scorecard includes information

about the actions the FCChas taken to protect consum-ers against slamming.

The Branch processed12,795 slamming complaintsand inquiries during 1996.This figure represents ap-proximately 36 percent ofthe total number of writtentelephone-related consumercomplaints and inquiries pro-cessed by the Branch duringthis time period.

Figure 5 shows the complaintratios for the long distancecompanies served with morethan 250 slamming com-plaints. Appendix B to thisScorecard lists the number ofcomplaints served, revenuedata and the complaint ratiosfor long distance companiesand billing agents servedwith more than 100 slam-ming complaints.

Figure 5 also shows that the four largest long distance companieshad the lowest complaint ratios — ranging from .05 to .12. Theother companies included in Figure 5 have complaint ratios rangingfrom .25 to 28.26. By comparison, the average slamming complaintratio for all long distance carriers and resellers listed in Appendix Bis .16.

0

5

10

15

20

25

30

AT&

T

MCI

Spr

int

Wor

ldC

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Fro

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ide

L. D

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Win

star

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Com

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Per

Mill

ion

Dol

lars


Complaint Ratios For Companies Served With MoreThan 30 Operator Service Provider (OSP) Complaints(Except Billing Agents)


Figure 6

TRENDS

0

2

4

6

8

10

Carrie

r Com

posit

e

Amer

ican

Tele

com

USLD

Inte

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See Appendix C

During 1996 the third highest category of consumer complaints andinquiries processed by the Consumer Protection Branch was inter-state operator service providers’ rates and practices.

OSPs provide long distance and,in some cases, local telephoneservice, from pay telephones orother types of telephones avail-able for consumer use in publiclocations. The second section ofthe Scorecard includes informa-tion about the actions the FCC hastaken to protect consumers fromthe high rates charged by someOSPs.

The Branch processed 4,132 in-terstate OSP complaints and in-quiries during 1996. This figurerepresents approximately 12 per-cent of the total number of com-plaints and inquiries processed bythe Branch during this time pe-riod.

Figure 6 shows the complaint ra-tios for companies providing OSPservices, except billing agents,which were served with morethan 30 OSP complaints during 1996. The complaint ratios for indi-vidual companies included in Figure 6 range from .38 to 9.09.

Appendix C to this Scorecard lists the number of complaints served,revenue data and the complaint ratios for companies -- includingOSPs, carriers, resellers and billing agents -- served with more than30 OSP complaints.


Complaints Served on Local Telephone CompaniesMany consumers first contact their local telephone company to resolve theircomplaints before sending a written complaint to the FCC. If the local tele-phone company successfully resolves a complaint, it may not be necessary forconsumers to file a complaint with the FCC.


Figure 7

TRENDS

0.00

0.05

0.10

0.15

0.20

0.25

0.30U

S W

EST

Uni

ted

SBC

SNET

Paci

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is

NYN

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Bell

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ALLT

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LAIN

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AR

S

TOTAL COMPLAINTS SERVEDTOTAL NON-SLAMMING COMPLAINTS SERVED

Figure 7 shows the local telephone companies that were servedwith more than 50 complaints during 1996. Appendix A to thisScorecard lists for each company included in Figure 7 the com-plaint ratios, communications revenues and the total number ofcomplaints served.

Figure 7 also shows the total number of complaints served on eachlocal telephone company in this group regarding all telephone-re-

lated issues, including slamming oftelephone service, and the totalnumber of complaints served oneach company involving issuesother than slamming. Of the 12,673complaints served on the local tele-phone companies in this group,8,329 complaints involved slam-ming of telephone service and 4,344involved issues other than slam-ming.

Slamming complaints involvinglong distance and other types ofcompanies are served on local tele-phone companies because the localtelephone companies have in theirrecords information essential to re-solving slamming complaints.

A local telephone company mayalso be served with complaints about services provided directly toconsumers by the local company or services involving other com-panies. For example, a local company may be served with a com-plaint because it issued a bill for disputed information service callson behalf of the information service provider or the long distancecompany that transmitted the calls. In this case, the telephone com-pany is served because it has entered into a contractual arrange-ment to render bills for such calls.


Description of Appendices

Questions about the statistical data included in the Scorecard appen-dices should be directed to the Industry Analysis Division, at (202)418-0940. Questions about the complaint statistics included in theScorecard should be directed to the FOIA/Information Team of theConsumer Protection Branch. The team can be reached by dialingthe Branch’s Consumer Hotline at (202) 632-7553. After reachingthe Consumer Hotline, callers should leave a message in menu selec-tion 8. The message should include the caller’s name, telephonenumber, and a description of the requested information.

Appendix A includes data for 83 companies that were served withmore than 50 telephone-related complaints during 1996. The totalnumber of complaints served on each company is based on informa-tion contained in the Consumer Protection Branch’s consumer com-plaints database.

Revenue information and complaint ratios are included for a numberof the listed companies. We have calculated complaint ratios for allcompanies with 100 or more complaints. The complaint ratio foreach company is the number of complaints served on the companydivided by its total communications-related revenue (measured inmillions of dollars). The weighted ratio for each category of compa-nies included in Appendix A is the total number of complaints servedon the companies listed in that category which have ratios listed di-vided by the total communications-related revenues for those com-panies (measured in millions of dollars).

Large carriers with revenues over $109 million are required to filepublic revenue figures. Carriers with less than $109 million in oper-ating revenues are also required to file revenue figures, but thesefigures are not made public. Our revenue estimate of $109 millionfor these carriers protects their privacy, but also understates theirtrue complaint ratios. Dividing their complaints by their true rev-enues would result in higher complaint ratios.

Some of the listed companies, such as billing agents, are not carriersand are not required to file revenue figures with the FCC. Billingagents were asked to provide their calendar year 1996 billing rev-enues. International Telemedia Associates, Inc. and Telephone Bill-ing Service declined to do so.

Appendix AAll Types of Telephone-Related Complaints

APPENDICES


Appendix B lists the number of slamming complaints, revenue, andthe slamming complaint ratios of long distance companies and bill-ing agents served with more than 100 slamming complaints in 1996.The slamming complaint ratio for each company is the number ofslamming complaints served on a company divided by its total com-munications-related revenue (measured in millions of dollars). Theweighted ratio for each category of companies included in AppendixB is the total number of slamming complaints served on all of thecompanies listed in that category divided by the total communica-tions-related revenues for all of the companies listed in that category(measured in millions of dollars).

I

Appendix C lists the number of Operator Service Provider (OSP)complaints served, revenue, and the OSP complaint ratios for com-panies served with more than 30 OSP complaints in 1996. The OSPcomplaint ratio is the number of OSP complaints served on a com-pany, divided by the company’s total communications-related rev-enue (measured in millions of dollars).

While OSPs generate most of their revenue through the provision ofoperator services, carriers and resellers generate most of their rev-enue through other long distance services, such as direct dialed calls.

Basing large carriers’ OSP complaint ratios on their total revenueswould be unfair to the firms specializing in OSP services. A bettercomparison would be to base the carriers’ OSP complaint ratios ontheir OSP revenues. Because these revenues are confidential, bas-ing a carrier’s individual OSP complaint ratios on its OSP revenue isnot possible. We therefore created a weighted ratio for the carriers,and for the combination of resellers and OSPs. We summed thecompanies’ operator service complaints and divided by the sum oftheir operator service revenues based on their TelecommunicationsRelay Service worksheets.

The composite weighted complaint ratio is .05 operator service com-plaints per million dollars of operator service revenue for carriers.The composite weighted ratio for resellers and OSPs is 7.82 opera-tor service complaints per million dollars of operator service rev-enue.

APPENDICES

Appendix COSP Complaints

Appendix BSlamming Complaints


APPENDIX A

Companies SerCompanies SerCompanies SerCompanies SerCompanies Served with More Than 50 Complaints in 1996ved with More Than 50 Complaints in 1996ved with More Than 50 Complaints in 1996ved with More Than 50 Complaints in 1996ved with More Than 50 Complaints in 1996

NotesRevenue

(Millions)Complaints

Complaints Per Million

Dollars of Revenue

ALLTEL Corporation 0.08 88 1,169 (1)Ameritech Corporation 0.12 1,404 11,615 (1)

Bell Atlantic Corporation 0.18 2,292 12,699 (1)BellSouth Corporation 0.11 1,640 14,413 (1)

Cincinnati Bell, Inc. 0.09 56 651 (1)Citizens Utilities Company 0.29 57 198 (1)

GTE Corporation 0.16 2,200 13,336 (1)

NYNEX Corporation 0.25 3,082 12,487 (1)

Pacific Telesis Group 0.27 2,269 8,350 (2)

Southern New England Telecommunications 0.14 192 1,363 (1)SBC 0.18 1,712 9,631 (2)

United Telephone Company - Sprint Corporation 0.05 269 5,117 (1)US WEST, Inc. 0.18 1,756 9,831 (1)

Weighted Ratio 0.17

All other companies served with more than 50 complaints

Absolute Telecommunications, Inc. 1.83 199 109 (3)American Telecommunications, Inc. 69American Telesource International, Inc. 4.83 70 15 (4)American Telnet, Inc. 79AMNEX, Inc. 6.70 785 117 (5)AT&T Corp. 0.10 3,999 39,264 (6)Atlas Communications 1.69 184 109 (3)

Billing Information Concepts, Inc. 3.80 4,935 1,300 (4) (10)Brittan Communications Inc. 2.29 250 109 (3)

Cherry Communications 0.32 112 354 (6)Cleartel Communications 1.19 130 109 (3)Coastal Telephone Company 77Colorado River Communications 86Combined Companies, Inc. 59Communication TeleSystems 2.32 454 196 (6)ConQuest Operator Service 63Corporate Services 0.93 101 109 (3)Crown Communications 1.35 147 109 (3)

Local Telephone Companiesof the following holding companies


E-Tel 1.09 119 109 (3)Eastern Telecommunications, Inc. 1.56 170 109 (3)Equal Net Corporation 10.07 612 61 (5)Excel Telecommunications, Inc. 0.32 352 1,091 (6)

Frontier Communications International 0.35 544 1,563 (6)Future Telephone Communications 2.28 249 109 (3)

GE Capital Communications 1.08 118 109 (3)Great Lakes Telecommunications Corporation 1.63 178 109 (3)

Heartline Communications, Inc. 9.02 983 109 (3)Home Owners Long Distance 1.33 145 109 (3)

Integrated Tele Services 1.38 150 109 (3)Integretel 4.04 1,565 388 (4)Intellicall Operator Services 0.65 50 77 (8)Inter Continental Telephone 1.10 120 109 (3)International Telemedia Associates, Inc. 978 (7)International Telnet 66

JTK Technologies 75

L.D. Services, Inc. 2.76 301 109 (3)LCI International Worldwide Telecommunications 0.23 252 1,103 (6)LDM Systems Inc. 8.63 246 29 (9)Long Distance Services (Virginia) 7.26 791 109 (3)Long Distance Services, Inc. (Michigan) 4.14 451 109 (3)

Matrix Telecom 1.38 150 109 (3)MCI Telecommunications Corporation 0.17 2,815 16,372 (6)Midcom Communications, Inc. 0.91 136 149 (6)

National Accounts Long Distance, Inc. 3.23 352 109 (3)National Telecom, USA 1.37 149 109 (3)National Telephone And Communications, Inc. 54Nationwide Long Distance, Inc. 3.55 387 109 (3)Network Service Center 1.73 189 109 (3)

OAN Services, Inc. 2.13 1,396 655 (4)Omega Telecommunications 63One -2- One Communications 88Operator Communications, Inc. 10.16 1,107 109 (3)OPTICOM Operator Services aka One Call 5.61 639 114 (6)

Pantel Communications 67Pilgrim Telephone, Inc. 2.43 265 109 (3)Polar Communications Corporation 89

ComplaintsPer Million

Dollars of Revenue ComplaintsRevenue

(Millions) Notes


APPENDIX A

All other companies served withmore than 50 complaints (cont’d)



APPENDIX A

NotesRevenue

(Millions)Complaints


Dollars of Revenue

(4) Calendar year 1996 revenueswere provided by a company rep-resentative.

(5) Total 1996 revenue from Securi-ties and Exchange Commission(SEC) forms 10K and/or 10Q.

(6) Long Distance Market SharesSecond Quarter, 1997. Table 5, re-leased October 10, 1997.

(7) Company identifies itself as abilling agent, but did not discloseits revenues to the FCC.

(8) 1996 telecommunications rev-enue from SEC forms 10K and/or10Q.

(9) Dun & Bradstreet report.

(10) The complaint and revenue to-tals for Billing Information Con-cepts, Inc. (BIC) includes revenuedata and complaints served data forthe following BIC subsidiaries: En-hanced Services Billing, Inc.; Bill-ing Information Concepts, Inc. dbaZero Plus Dialing; and Billing In-formation Concepts, Inc. dba USBilling.

Quest Communications 1.26 137 109 (3)

Sprint Communications Company, L. P. 0.16 1,250 7,944 (6)

TELCAM 8.22 83 10 (9)Telco Communications Group 0.59 251 429 (6)Telephone Billing Service 392 (7)Texas Amtel 1.04 113 109 (3)The Furst Group 3.56 388 109 (3)Trans National Telephone 2.29 250 109 (3)

USLD Communications 1.04 196 188 (6)US Teleconnect 2.22 242 109 (3)

VarTec Telecom, Inc. 0.23 108 470 (6)

Winstar Gateway Network 29.12 990 34 (8)WKP Communications 66WorldCom, Inc. 0.22 979 4,485 (6)

Weighted Ratio 0.39

All other companies served withmore than 50 complaints (cont’d)

(1) United States Telephone Asso-ciation, Holding Company Report1997.

(2) Statistics of CommunicationsCommon Carriers. Table 2.1.

(3) Carrier’s revenue was not pub-licly reported. Carriers with morethan $109 million in telecommu-nications revenue in 1996 were re-quired to publicly report their rev-enue. To calculate a ratio, $109million was assumed if the carrierhad more than 100 complaints. Asa result, the carrier’s reported com-plaint ratio will be lower than itstrue complaint ratio.

Notes:


Carriers 1

AT&T Corp. 0.05 1,866 39,264Frontier Communications International 0.25 396 1,563LCI International Worldwide Telecommunications 0.13 145 1,103Long Distance Services, Inc. (Michigan) 4.06 442 109MCI Telecommunications Corporation 0.07 1,162 16,372Sprint Communications Company, L. P. 0.09 750 7,944WorldCom, Inc. 0.12 528 4,485

Resellers1Atlas Communications 1.64 179 109Brittan Communications Inc. 2.11 230 109Eastern Telecommunications, Inc. 1.45 158 109Equal Net Corporation 8.72 530 61Excel Telecommunications, Inc. 0.18 200 1,091Future Telephone Communications 1.02 111 109Great Lakes Telecommunications Corporation 1.53 167 109Heartline Communications, Inc. 8.72 951 109Home Owners Long Distance 1.27 138 109Integrated Tele Services 1.28 139 109L.D. Services, Inc. 2.38 259 109LDM Systems Inc. 8.59 245 29Long Distance Services (Virginia) 6.20 676 109Matrix Telecom 1.08 118 109National Accounts Long Distance, Inc. 2.83 309 109Nationwide Long Distance, Inc. 3.17 345 109Network Service Center 1.58 172 109Quest Communications 1.83 200 109The Furst Group 3.07 335 109Trans National Telephone 2.14 233 109Winstar Gateway Network 28.26 961 34

Weighted Ratio: Carriers and Resellers 0.16

Billing AgentsBilling Information Concepts, Inc. 2.13 2,772 1,300Integretel 1.07 414 388

Weighted Ratio: Billing Agents 1.89

1 Telecommunications Industry Revenue: TelecommunicationsRelay Service Fund Worksheet Data. Companies self-identifiedthemselves as a carrier or reseller.

APPENDIX B

Companies SerCompanies SerCompanies SerCompanies SerCompanies Served With More Than 100 Slamming Complaints in 1996ved With More Than 100 Slamming Complaints in 1996ved With More Than 100 Slamming Complaints in 1996ved With More Than 100 Slamming Complaints in 1996ved With More Than 100 Slamming Complaints in 1996


Dollars of RevenueSlamming

ComplaintsRevenue

(Millions)

Notes:


APPENDIX C

Companies SerCompanies SerCompanies SerCompanies SerCompanies Served With More Than 30 OSP Complaints in 1996ved With More Than 30 OSP Complaints in 1996ved With More Than 30 OSP Complaints in 1996ved With More Than 30 OSP Complaints in 1996ved With More Than 30 OSP Complaints in 1996


Dollars of RevenueOSP

ComplaintsRevenue

(Millions)

1Telecommunications Industry Revenue: Telecommunications Relay Ser-vice Fund Worksheet Data. Companies self-identified themselves as acarrier, reseller or OSP.

2Less than .005 OSP complaints per million dollars of total revenue.

3Based on actual OSP revenue obtained from Telecommunications RelayService (TRS) Fund Worksheets. American Telecommunications, Inc. didnot file TRS worksheet, but confirmed that it was a reseller. Polar Com-munications Corporation is no longer in business and did not file a TRSworksheet.

Carriers 1

AT&T Corp. *2 63 39,264MCI Telecommunications Corporation *2 54 16,372USLD Communications 0.42 79 188WorldCom 0.04 179 4,485 Weighted ratios for carriers Based on total revenue 0.01 Based on total OSP revenue3 0.05

Resellers1American Telecommunications, Inc. 0.38 41 109Communication TeleSystems 1.04 203 196

Operator Service Providers1AMNEX, Inc. 4.91 575 117Cleartel Communications 1.09 119 109ConQuest Operator Service 0.53 58 109Intellicall Operator Services 0.44 34 77National Telecom, USA 1.30 142 109Operator Communications, Inc. 9.09 991 109OPTICOM Operator Services aka One Call 5.33 608 114Polar Communications Corporation 0.78 85 109 Weighted ratios for OSPs and resellers Based on total revenue 2.47 Based on total OSP revenue3 7.82

Billing AgentsBilling Information Concepts, Inc. 0.46 599 1,300Integretel 0.22 84 388OAN Services, Inc. 1.37 898 655 Weighted ratio for billing agents Based on total revenue 0.68

Notes:


to Abbreviations of Company

Names Used in Scorecard Charts

and Graphs Abbv..... CompanyCompanyCompanyCompanyCompany

Guide

ALLTEL ALLTEL CorporationAmerican Telecom American Telecommunications, Inc.Ameritech Ameritech CorporationAMNEX AMNEX, Inc.AT&T AT&T Corp.Bell Atlantic Bell Atlantic CorporationBellSouth BellSouth CorporationBilling Information Billing Information Concepts, Inc.Cincinnati Bell Cincinnati Bell, Inc.Citizens Citizens Utilities CompanyCleartel CleartelCommunicationsComm. TeleSystems Communication TeleSystemsConQuest ConQuest Operator ServiceEqual Net Equal Net CorporationFrontier Frontier Communications InternationalGTE GTE CorporationHeartline Heartline Communications, Inc.Intellicall Intellicall Operator ServicesL.D. Services L.D. Services, Inc.L. Distance (VA) Long Distance Services (Virginia)L. Distance (MI) Long Distance Services, Inc. (Michigan)MCI MCI Telecommunications CorporationNational Accounts National Accounts Long Distance, Inc.National Telecom National Telecom, USANationwide Nationwide Long Distance, Inc.NYNEX NYNEX CorporationOAN OAN Services, Inc.Operator Comm Operator Communications, Inc.OPTICOM OPTICOM Operator Services a/k/a One CallPacific Telesis Pacific Telesis GroupPolar Polar Communications CorporationSNET Southern New England TelecommunicationsSprint Sprint Communications Company, L.P.USLD USLD CommunicationsUnited United Telephone Company-Sprint CorporationUS WEST US WEST, Inc.Winstar Winstar Gateway NetworkWorldCom WorldCom, Inc.

ABBREVIATIONS


✰How to File a Complaint with the FCC Regarding Telephone-Related Issues.

✰Taxes and Other Charges on Your Telephone Bill.

✰Know your Operator Service Provider Before Making Calls from Public Telephones.

✰How to Select a Long Distance Telephone Company.

✰Been Slammed? Protect Your Rights.

✰Telephone Toll Fraud and You.

✰Telephone Toll Fraud and Your Business.

✰900 Number Pay-Per-Call and Other Information Services.

✰What You Can Do About Unsolicited Telephone Calls and Faxes.

✰Recording Telephone Conversations.

✰Invalid or Unclear Charges on Local Telephone Bills.

✰Calls Made From Payphones.

✰Fall 1996 Common Carrier Scorecard. This Scorecard provides an analysis of trends in consumer complaints, information on slamming and valuable consumer tips.

Internet:

The above consumer information is available through:

Fax-on-Demand: Dial (202) 418-2830. From the main menu select the indices option. Thenselect the fact sheet option for a list of fact sheets and document numbers.For the Fall 1996 Scorecard, select document number 6720.

Calling the following FCC numbers:

National Call Center toll-free, at 1-888-CALL FCC (1-888-225-5322).Office of Public Affairs, Public Service Division, at (202) 418-0200.

Consumer Hotline of the Enforcement Division, Common Carrier Bureau, at (202) 632-7553.

Telecommunications Device for the Deaf (TTY) toll-free, at 1-888-TELL-FCC (1-888-835-5322).

Browse and download the Fall1996 Scorecard from the World Wide Web at:http://www.fcc.gov/Bureaus/Common_Carrier/Reports/score_card_95.html

Other consumer information is available at:http://www.fcc.gov/ccb/consumer_news/

Information About Local And Long Distance Telephone CompaniesCheck out the FCC-State Link Homepage at:http://www.fcc.gov/ccb/stats

Check out our consumerInformation on Telephone-Related Issues

CONSUMER INFORMATION

Documents

Common Carrier Scorecard - Federal …...Common Carrier Produced by the Federal Communications Commission Washington, D.C. Providing consumers and the industry with relevant information