NEWSReport No. CC 96-19  COMMON CARRIER ACTION      December 6, 1996
   
   
   COMMON CARRIER BUREAU REACHES CONSENT 
          DECREE WITH WINSTAR
               
        The Common Carrier Bureau (Bureau) released today a Consent Decree with
   WinStar Gateway Network, Inc. (WGNI), based in Dallas, Texas, terminating the
   FCC's investigation into complaints pending against WGNI for unauthorized changes
   of consumers' primary interexchange carriers (PIC), a practice more commonly
   known as "slamming."  The Consent Decree stems from complaints involving box
   programs used by a marketing agent hired by WGNI to solicit customers for
   WGNI's long-distance service.  Box programs are marketing programs in which
   blank letter of agency (LOA) forms are placed on or near boxes that feature
   promotional language for entering contests and other activities, and which are
   located in public or semi-public locations.
   
        "WGNI has identified the problem and has implemented a number of
   remedial actions on its own which have helped alleviate the Commission's concerns. 
   The proactive response and good faith efforts of WGNI were significant factors
   leading to this settlement," said John B. Muleta, Chief, Enforcement Division,
   Common Carrier Bureau.  "This agreement clearly represents a victory for
   consumers, and for the FCC."
   
        Under the terms of the Consent Decree, WGNI will make a non-tax
   deductible, voluntary contribution of $80,000 to the United States Treasury.  In
   addition to lowering its prices to affected customers and terminating marketing
   programs with the agents responsible for the unauthorized switching last August,
   WGNI will:  issue prepaid five dollar ($5) telephone debit cards and a three dollar
   ($3) check payable to cash to certain former box subscribers; provide a three dollar
   ($3) credit to all current WGNI subscribers who joined WGNI through box
   programs; provide a sixteen cents ($0.16) per minute rate to existing WGNI
   customers who joined WGNI through box programs prior to the release date of the
   Consent Decree; and increase verification procedures to protect against future
   unauthorized long distance carrier conversion.
       
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        The Commission continues to actively investigate consumer allegations of
   slamming and is working with interexchange carriers to identify marketing
   approaches that may lead to unauthorized long distance conversions.
       
                                -- FCC --
                                    
        Common Carrier Bureau News Contact:  Jodie Buenning at (202) 418-7272
        Enforcement Division Contact:  Nina Sandman at (202) 418-1688