NEWSReport No. DC 96-50    ACTION IN DOCKET CASE               June 6, 1996

                FCC PROPOSES PRICE DISCLOSURE  REQUIREMENT
                 FOR HIGHER-PRICED AWAY-FROM-HOME CALLS
                  Callers Could "Hang Up On High Rates"
                           (CC DOCKET NO. 92-77)

     As part of its continuing effort to address consumer complaints about high rates for
away-from-home calls, the Commission has proposed to require that long distance carriers
providing service at public payphones automatically disclose their rates to consumers at the
time the call is made if those carriers charge rates significantly above the industry norm. 
The automatic price disclosure would give consumers the opportunity to hang up on high
rates and to place the call using another service provider.

     In a Further Notice of Proposed Rulemaking (NPRM) released today, the Commission
proposed to require those interexchange carriers (IXCs) offering operator services through
payphones and other aggregator locations to disclose their rates to callers before the call is
completed and any charges have been incurred.

     The Commission tentatively concluded that it should establish benchmarks for charges
of operator service providers (OSPs), and for any associated aggregator surcharges.  The
Commission also tentatively concluded that it should require OSPs that charge, or allow,
rates above that benchmark level to disclose orally those rates to callers before connecting
the call.  Alternatively, the Commission sought comment on requiring all OSPs to disclose
their rates on all 0+ calls from payphones or other aggregator locations.

     "Consumers have a right to know what they will pay when they use a payphone," said
Common Carrier Bureau Chief Regina Keeney.  "Hundreds of carriers compete to offer this
service.  A caller should not unknowingly incur what that consumer considers an
unreasonable charge for placing a long distance call.  We want consumers to have the
information they need to decide who should carry that call.  This will have the added benefit
of encouraging those high priced carriers to lower their rates -- or lose their potential
customers."



                                  (over)




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     Interstate 0+ calls from payphones, hotels, motels, and other aggregator locations are
routed to the OSP chosen by the premises or payphone owner.  While some callers generally
used access codes to "dial around" the presubscribed OSP to reach their preferred OSP
carrier, some aggregators blocked the use of such access codes.  Congress responded with
the Telephone Operator Consumer Services Improvement Act of 1990, prohibiting blocking,
but this did not fully resolve the problem for many callers.  Between August 1, 1994, and
August 31, 1995, the Commission received more than 4160 complaints about OSPs'
interstate rates and more than 880 complaints about their intrastate rates.

     The Commission initially proposed a system of Billed Party Preference (BPP),
whereby aggregators would be required to ensure that all 0+ calls are automatically routed
to the carrier preferred by the party billed for the call, after consulting a database indicating
the billed party's preferred OSP.  After making a cost-benefit analysis of the data it initially
received, the Commission sought corrections and confirmation of its data and analysis, as
well as alternatives to BPP.

     Two parties proposed alternatives in early 1995.  The National Association of
Attorneys General proposed that OSPs charging rates above the level of the largest IXC be
required to make a disclosure to callers.  CompTel proposed a higher benchmark and that
OSPs charging rates above that level be required to justify the rates with cost support.  After
seeking comment on those proposals, the Commission decided to propose the price disclosure
mechanism included in the NPRM released today. 

     The Commission also seeks comment on whether, under the recently-enacted
Telecommunications Act of 1996, must forbear from applying informational tariff filing
requirements and, if not, on proposed rules and a waiver policy with respect to the filing of
such tariffs.  Comments are also requested on whether the public interest would be better
served by means other than BPP for calls from inmate-only telephones in prisons.

     Action by the Commission June 4, 1996, by Second Further Notice of Proposed
Rulemaking (FCC 96-253).  Chairman Hundt, Commissioners Quello, Ness and Chong.


                                   -FCC-

     News Media contact: Mindy J. Ginsburg at (202) 418-1500.
     Common Carrier Bureau contact: Adrien R. Auger at (202) 418-0960 and Mark
Nadel at (202) 418-1580.