NEWSReport No. CC 95-52 COMMON CARRIER ACTION September 21, 1995 ONCOR/OCI ENTERS CONSENT DECREE WILL MAKE $500,000 PAYMENT TO U.S. TREASURY MAINTAIN "STAY AWAY" LIST, TAKE OTHER STEPS Operator Communications Inc. dba Oncor Communications, Inc. ("Oncor") has agreed to make a voluntary payment to the U.S. Treasury of $500,000 to settle allegations that Oncor violated Commission rules by switching a telephone subscriber's long distance carrier without the subscriber's authorization. Under the terms of a Consent Decree announced today, Oncor will also implement specific measures designed to protect consumers from being switched to Oncor service without their approval in the future. In July 1995, Oncor began operating using the name "OCI." On March 31, 1995, the Commission released a Notice of Apparent Liability finding that Oncor had apparently violated Commission rules and orders by changing the primary interexchange carrier (PIC) designated by the Metropolitan Transportation Authority of the State of New York ("MTA") for 94 of its pay telephone lines without MTA's authorization. The Consent Decree announced today will terminate that proceeding and address a number of other outstanding informal complaints to the Commission accusing Oncor of slamming. "Slamming" refers to the unauthorized switching of a telephone subscriber's long distance carrier. In addition to making the voluntary payment, Oncor will establish and maintain a "Stay-Away List" of individuals and entities who request that the company not market to, solicit, or contact them. Oncor may not submit any PIC change on behalf of a customer unless the company has first verified that the subscriber is not included in the Stay-Away List, obtained a Letter of Agency that complies with all Commission rules and is signed by the individual authorized to designate a PIC change or the individual has submitted approval directly to the local exchange carrier (LEC), and a LEC or other independent third party has verified each PIC change request. And, within 14 days of verifying each PIC change request, Oncor must mail a new customer letter again confirming the change and disclosing all the conditions and charges that will apply to the customer's long distance service. (over) - 2 - The Consent Decree also requires Oncor to refund PIC change fees to any customers that allege Oncor switched their service without authorization and for whom Oncor is unable to produce a valid, signed LOA or other record of verification. In addition, any end user who complains about Oncor's charges within six months of a disputed PIC change will have his or her bill re-rated to reflect what would have been charged by the original carrier. If the bill has already been paid, Oncor will refund the difference to that end user. In other words, if a consumer uses a pay telephone whose owner has alleged that its service was switched to Oncor without authorization, a consumer using that payphone would be entitled to a refund or re-rating for calls made from that phone. Oncor must also disclose to each prospective customer that the customer is being asked to switch to Oncor, that the customer may select only one primary interexchange carrier, or 0+ or operator services carrier per line, and that the customer will incur a fee for this switch, although Oncor may inform the customer that it will reimburse those charges. Oncor has also agreed to monitor the agents and employees marketing and advertising its services and respond appropriately to violations of the Consent Decree by any individual or entity acting on its behalf. The Consent Decree does not constitute a finding by the Commission or admission by Oncor of any liability for the acts described in the NAL or in other complaints before the Commission. Action by the Commission, September 20, 1995, by Order (FCC 95-400). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong. -FCC- News media contact: Susan Lewis Sallet at 9202) 418-1500. Common Carrier Bureau contact: Heather McDowell at (202) 418-0965.