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                           Before the
               Federal Communications Commission
                     Washington, D.C. 20554



In the Matter of

Implementation of the Subscriber Carrier
Selection Changes Provisions of the
Telecommunications Act of 1996

Southwestern Bell Telephone Company

Emergency Petition for Waiver
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CC Docket No. 94-129






                             ORDER

   Adopted: June 15, 2001               Released:  June 18, 2001

By the Associate Chief, Accounting Policy Division, Common Carrier Bureau:

                I.  INTRODUCTION AND BACKGROUND
1.     In its Carrier Change Orders, the Commission adopted rules applicable to carriers
changing a consumer's preferred carrier.    In this Order, we grant Southwestern Bell Telephone
Company (SWBT) a limited waiver of the authorization and verification requirements of the
Commission's rules and Carrier Change Orders.  We grant this limited waiver to the extent
necessary to enable SWBT to become the preferred carrier of certain consumers currently
presubscribed to OpTel, Inc., TVMAX Telecommunications, Inc., and Optel Telecomm, Inc.
(collectively, Optel) in the greater metropolitan area of Dallas-Fort Worth, Texas, without first
obtaining the consumers' authorization and verification.
2.     Section 258 of the Communications Act of 1934, as amended by the
Telecommunications Act of 1996, makes it unlawful for any telecommunications carrier to
"submit or execute a change in a subscriber's selection of a provider of telephone exchange
service or telephone toll service except in accordance with such procedures as the Commission
shall prescribe."  The goal of section 258 is to eliminate the practice of "slamming," the
unauthorized change of a subscriber's preferred carrier.  Pursuant to section 258, carriers are
absolutely barred from changing a customer's preferred local or long distance carrier without first
complying with the Commission's verification procedures.  In the Section 258 Order, the
Commission revised its procedures to ensure that carriers obtain the requisite authority prior to
changing a customer's preferred carrier.  The Commission requires that carriers follow one of the
Commission's prescribed verification procedures before submitting carrier changes on behalf of
consumers.
3.     SWBT seeks an emergency waiver of our verification rules to allow SWBT to be
designated the preferred local carrier for certain customers of Optel without first obtaining each
customer's authorization and verification.  Because we conclude that, under the circumstances
presented, it is in the public interest to do so, we grant SWBT a waiver, subject to the conditions
represented in its filings.
                        II.  DISCUSSION
4.     Generally, the Commission's rules may be waived for good cause shown.  As noted
by the Court of Appeals for the D.C. Circuit, however, agency rules are presumed valid.  The
Commission may exercise its discretion to waive a rule where the particular facts make strict
compliance inconsistent with the public interest.  In addition, the Commission may take into
account considerations of hardship, equity, or more effective implementation of overall policy on
an individual basis.  Waiver of the Commission's rules is therefore appropriate only if special
circumstances warrant a deviation from the general rule, and such a deviation will serve the
public interest. 
5.     We find that SWBT has demonstrated that good cause exists to justify a limited
waiver of the Commission's authorization and verification requirements to the extent necessary
to enable SWBT to transfer to its own customer base the affected Optel customers.  According to
the Waiver Petition, on October 28, 1999, Optel filed for protection under Chapter 11 of Title 11
of the U.S. Code in the U.S. Bankruptcy Court for the District of Delaware.  Optel plans to
discontinue service.  SWBT and Optel have entered into an agreement, conditioned on FCC
approval, pursuant to which approximately 4,000 of Optel's local exchange customers in portions
of the greater metropolitan area of Dallas-Fort Worth, Texas, will be transferred to SWBT if they
do not select another carrier.  Optel has obtained an order of the Court approving Optel's right to
consummate the transaction.
6.     We conclude that special circumstances exist to justify a waiver.  Without this waiver,
the local service of some former Optel customers might temporarily be interrupted when Optel
ceases providing presubscribed service to customers who fail to respond in a timely fashion to
requests for preferred carrier change authorizations.  We conclude that a waiver of the
Commission's carrier change rules and orders is necessary to provide a seamless transition with
no disruption of local service to the transferred customers.
7.     We find that SWBT has demonstrated that a limited waiver of the authorization and
verification rules is in the public interest because it will prevent consumers from temporarily
losing local service, and because SWBT has agreed to notify the affected customers as described
below.  According to the Waiver Petition and subsequent filing, SWBT will undertake a two-step
process to notify the affected customers of the transfer.  To maximize administrative
efficiencies and eliminate customer confusion, SWBT and Optel will notify affected customers
of the transfer at least 30 days prior to the scheduled transfer date.  This notification letter also
advises the affected customers that they may select a different preferred carrier, should they
desire to do so.  In addition, the affected customers will receive a toll-free number to call with
any questions they may have about the transfer. 
8.     Once the proposed transfer has been completed, SWBT promises to notify these
customers of that event and reiterate the foregoing information, assurances, and advice.  In
addition, SWBT states that Optel has committed to attempt to revolve any outstanding customer
complaints regarding services provided by Optel for a minimum of 30 days after the transfer.
9.     For the foregoing reasons, we grant SWBT a waiver of the authorization and
verification requirements of our rules for the limited purposes described above.  The grant of this
waiver is conditioned upon the provision of customer notification and the handling of
complaints, as described above and further detailed in the Waiver Petition and Supplemental
Filing.
                     III.  ORDERING CLAUSES
10.    Accordingly, pursuant to authority contained in Sections 1, 4, and 258 of the
Communications Act of 1934, as amended, 47 U.S.C.  151, 154, 258, and the authority
delegated under sections 0.91, 0.291, and 1.3 of the Commission's rules, 47 C.F.R.  0.91,
0.291, 1.3, the waiver request filed by SWBT, Inc., on May 22, 2001, and supplemented on June
11, 2001, IS GRANTED to the extent indicated herein. 
11.    IT IS FURTHER ORDERED that this Order is effective upon release. 
                              FEDERAL COMMUNICATIONS COMMISSION


                              
                              K. Michele Walters
                              Associate Chief, Accounting Policy Division
                              Common Carrier Bureau