NEWSReport No. CC 96-15    COMMON CARRIER ACTION              June 21, 1996

      COMMISSION FINDS HEARTLINE COMMUNICATIONS APPARENTLY LIABLE 
                FOR FORFEITURE OF $200,000 FOR SLAMMING 
        AND ISSUES NOTICE OF FORFEITURE AGAINST EXCEL FOR $80,000

       The Commission has issued a Notice of Apparent Liability (NAL) finding Heartline
Communications, Inc. ("Heartline") apparently liable for a forfeiture penalty of $200,000 for
willful or repeated violations of the Commission's telephone slamming rules.  In addition, the
Common Carrier Bureau assessed a forfeiture of $80,000 against Excel Telecommunications,
Inc. (Excel) for its violations of the Commission's slamming rules.  The practice of changing
a consumer's long distance company without that consumer's express approval is commonly
known as "slamming."

       The Commission determined that Heartline, which is based in Houston, Texas,
apparently violated federal rules by using falsified or forged letters of agency (LOAs) as
authority to substitute itself as the long distance company for five different consumers. 
Heartline apparently changed these consumers' chosen long distance company without their
authorizations.

       The five consumers who complained to the Commission alleged that Heartline
apparently converted their presubscribed long distance service provider without their
permission by using falsified or forged LOAs. The Commission has found that the
information supplied by the complainants leaves virtually no doubt that the LOAs were not
executed by the complainants, and Heartline therefore lacked the requisite authorization to
request a change to its own long distance service. 

       Calling these actions "particularly egregious," the Commission stated that Heartline
neither denied that the signatures on the LOAs do not match the complainants nor disputed
the complainants' allegations that the signatures on the LOAs are forgeries.  Using what
appeared to be a "form letter" in response to the Commission's inquiries into the complaints,
Heartline informed the Commission that it used a marketing agent to obtain the LOAs in
question.  The Commission noted in the NAL, however, that the actions of Heartline's
marketing agents do not relieve Heartline of its independent obligation to ensure compliance
with the rules, and that under the Communications Act the acts or omissions of an agent or
other person acting for a common carrier are deemed to be the acts or omissions of the carrier
itself.

       In Excel's case, in August 1995, the Common Carrier Bureau issued a NAL finding
Excel apparently liable for a forfeiture penalty of $80,000 for slamming violations.  The
Bureau determined that Excel violated the Commission's rules by substituting itself as the
primary long distance carrier for two consumers without the consumers' authorizations.  The
consumers both stated that they did not authorize the changes, and that the authorization
forms that Excel produced bore forged signatures and fabricated social security numbers.  In
the Notice of Forfeiture released today, the Bureau concluded that Excel has failed to identify
facts or circumstances that would persuade the Bureau that there is any basis for
reconsidering the NAL, and that Excel has not shown any mitigating circumstances sufficient
to warrant a reduction of the $80,000 forfeiture penalty.

       The Commission has stated that slamming continues to be a widespread problem in
the industry and expressed concern at what appears to be a common practice by some long
distance carriers of relying on unverified LOAs, which turn out to be falsified or forged.  The
Commission said it intends to continue to scrutinize consumer complaints and take prompt
enforcement action to draw attention to the seriousness of the problem and to provide
incentives to comply with the Commission's rules and orders.

       In an related matter, the Bureau announced a negotiated settlement with MCI resolving
an NAL involving allegations of slamming based upon forged LOAs.

       Action by the Commission, June 20, 1996, by Notice of Apparent Liability for
Forfeiture (FCC 96-272). Chairman Hundt, Commissioners Quello, Ness, and Chong.  

       Action by the Bureau, June 20, 1996, by Notice of Forfeiture (DA 96-1009).

   - FCC -

       News Media contact: Mindy Ginsburg at (202) 418-1500.
       Common Carrier Bureau contact: Keith Nichols and Colleen Heitkamp 
               at (202) 418-0960.