NEWSReport No.  CC 95-9            COMMON CARRIER ACTION   February 1, 1995

     STAFF RULING UPHELD  THAT TELECONNECT WAS OVERCHARGED BY LECS 

     The Commission has upheld its staff's ruling that 21 local exchange carriers (LECs)
improperly assessed the higher carrier common line (CCL) charge on the originating end of calls
using Teleconnect Company's nationwide 800 travel service.

      The Common Carrier Bureau had found that only a single higher CCL charge should
have been assessed on the calls.  According to the Bureau, the LECs had unlawfully assessed
the higher CCL charge on the originating end of calls using Teleconnect's 800 services at the
same time that the  terminating LEC were  also assessing the higher CCL charge.  

     FCC rules state that the CCL charge is only to be assessed on an "open" end of a call,
which is an end using exchange carrier common line plant to originate or terminate the call.  A
"closed" end does not use common line plant.
     
     Teleconnect filed its complaint against The Bell Telephone Company of Pennsylvania;
The Chesapeake and Potomac Telephone Company; The Chesapeake and Potomac Telephone
Company of Maryland; The Chesapeake and Potomac Telephone Company of Virginia; The
Chesapeake and Potomac Telephone Company of West Virginia; Illinois Bell Telephone
Company; Indiana Bell Telephone Company; Michigan Bell Telephone Company; The Mountain
States Telephone and Telegraph Co.; Nevada Bell Telephone Company; New England Telephone
and Telegraph Company; New Jersey Bell Telephone Company; New York Telephone
Company; Northwestern Bell Telephone Company; The Ohio Bell Telephone Company; The
Pacific Telephone and Telegraph Company; The Pacific Northwest Bell Telephone Company;
South Central Bell Telephone Company; Southern Bell Telephone and Telegraph Company,
Southwestern Bell Telephone Company; and Wisconsin Bell, Inc. 

     In affirming the Bureau's finding, the Commission noted that a call using Teleconnect's
800 services is initiated by an end user from a common line "open" end, is routed through a
LEC to an 800 line provided by an underlying carrier such as AT&T, and is then transferred
from that 800 line to Teleconnect's facilities by another LEC.  At that point, Teleconnect
generally routes the call through the LEC to the end user being called.  If that called party is
outside the local exchange area, Teleconnect sends the call over a private line to the called
party's local exchange area and then through a LEC to that party.  In both cases, the call will
originate and terminate on an open end. 



                                  (over)
                                   - 2 -

     The Commission did not agree with the LEC's argument that Teleconnect's 800 service
configuration is actually comprised of two calls and that two higher CCL charges are therefore
justified.   They contended that the first call originates with the calling party and terminates at
Teleconnect's intermediate switch.  At that point the calling party initiates a second call, which
originates at the intermediate switch and terminates at the called party's line.

     The Commission said Teleconnect's 800 service configuration provides a single interstate
communication that is not bisected by intermediate switching facilities.

     The Commission also affirmed the Bureau's determination that the LECs are liable for
CCL overcharges.

     Action by the Commission

     News Media contact: Rosemary Kimball at (202) 418-0500.
     Common Carrier Bureau contact: Kurt Schroeder at (202) 418-0960.