******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) LCI INTERNATIONAL WORLDWIDE ) File No. ENF-95-19 TELECOMMUNICATIONS ) NAL/Acct. No. 516EF0008 ) ORDER Adopted: August 22, 1997 ; Released: August 26, 1997 By the Chief, Common Carrier Bureau: 1. In August 1995, the Enforcement Division of the Common Carrier Bureau ("The Bureau") began an investigation of LCI International Worldwide Telecommunications ("LCI"), regarding possible violations of the Commission's policies and rules concerning primary interexchange carrier ("PIC") conversions. 2. On September 15, 1995, the Bureau issued to LCI a Notice of Apparent Liability for Forfeiture ("NAL") in the amount of forty thousand dollars ($40,000) based on the Bureau's preliminary determination that LCI had apparently willfully violated the Commission's PIC rules and orders. 3. The Bureau and LCI, by and through their respective counsel, entered into consent negotiations concerning LCI's alleged violation and have reach an agreement that terminates the investigation. The terms and conditions of the agreement are set forth in the attached Consent Decree and such terms and conditions are incorporated herein by reference. 4. We have evaluated the circumstances of this matter and find that approval of the attached Consent Decree is in the public interest. 5. Accordingly, IT IS ORDERED, pursuant to Section 4(i) of the Communications Act, 47 U.S.C.  154(i), and the authority delegated in Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91 and 0.291, that the attached Consent Decree is hereby ADOPTED and that the above- captioned proceeding is thereby terminated. 6. IT IS FURTHER ORDERED that the Division Chief, Enforcement Division SHALL SIGN the Consent Decree on behalf of the Common Carrier Bureau of the Federal Communications Commission. FEDERAL COMMUNICATIONS COMMISSION Regina M. Keeney Chief, Common Carrier Bureau Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In the Matter of ) ) LCI INTERNATIONAL WORLDWIDE ) File No. ENF-95-19 TELECOMMUNICATIONS ) ) NAL/Acct. No. 516EF0008 Apparent Liability for Forfeiture) CONSENT DECREE 7. The Common Carrier Bureau ("Bureau") of the Federal Communications Commission ("FCC" or "Commission") and LCI International Telecom Corporation ("LCI"), by their attorneys or authorized representatives, hereby enter into a Consent Decree terminating a FCC investigation concerning LCI's alleged apparent violation of the Commission's policies and rules regarding primary interexchange carrier ("PIC") conversions. LCI is a common carrier which provides interstate and international interexchange telecommunications services pursuant to tariffs on file with the Commission. 8. On September 15, 1995, the Bureau issued to LCI a Notice of Apparent Liability for Forfeiture. The Bureau determined that LCI had apparently violated Commission rules and orders by changing the PIC designated by Ms. Edna Belle Mills of Wilton, Connecticut without her authorization. After reviewing the facts and circumstances surrounding the alleged violations, the Bureau found LCI apparently liable for forfeiture in the amount of forty thousand dollars ($40,000). LCI filed a written response to the NAL on November 3, 1995, in which the company denied any violation of the Commission's PIC-change rules or policies. The Bureau and LCI thereafter entered into consent negotiations and have agreed to terminate this proceeding pursuant to the terms and conditions set forth herein. 9. For the purposes of this Consent Decree the following definitions shall apply: a. "Commission" or "FCC" means the Federal Communications Commission; b. "Bureau" means the Common Carrier Bureau of the Federal Communications Commission; c. "LCI" means LCI International Telecom Corporation, its successors and assigns; d. "Parties" means LCI and the Commission; e. "Adopting Order" means an Order of the Commission adopting the terms and conditions of this Consent Decree; f. "PIC Change" is an order or request transmitted by an interexchange carrier to a local exchange carrier (LEC) requesting a change of a customer's PIC; g. "Letter of Agency" or "LOA" means a written authorization signed by the customer authorizing a PIC change; h. "Informal Complaint" or "Consumer Complaint" means a complaint filed with the Consumer Protection Branch of the Common Carrier Bureau's Enforcement Division under 47 C.F.R.  1.716. 10. The parties agree that the provisions of this Consent Decree shall be subject to final approval by the Bureau by incorporation of such provisions by reference in an Adopting Order of the Bureau, and that adoption of such Order by the Bureau shall terminate the captioned proceeding. 11. The parties agree that this Consent Decree shall become effective the date on which the Adopting Order is released by the Common Carrier Bureau. Upon release, the Adopting Order and this Consent Decree shall have the same force and effect as any other order of the Commission and any violation of the terms of this Consent Decree shall constitute a violation of a Commission Order entitling the Commission to exercise any and all rights and to seek any and all remedies authorized by law for the enforcement of a Commission Order. 12. LCI admits that the Commission has jurisdiction over it and the subject matter of this action. 13. LCI agrees to waive any further procedural steps and any rights it may have to seek judicial review or otherwise challenge or contest the validity of the Adopting Order or this Consent Decree. 14. LCI agrees to waive any rights it may have under the Equal Access to Justice Act. 15. The parties agree and acknowledge that this Consent Decree shall constitute a final settlement between LCI and the Commission of the above-captioned NAL proceeding but that this Consent Decree is not dispositive of the rights of any complainant who has filed an informal complaint against LCI and does not resolve those complaints or any matter(s) within the jurisdiction of any other federal agency. 16. The parties agree that this Consent Decree is for settlement purposes and that LCI does not admit any alleged violation or liability for the specific acts described in the NAL or in any informal complaints received by the Commission on or before the effective date of this Consent Decree. 17. LCI shall make a voluntary contribution to the United States Treasury in the amount of fifteen thousand dollars ($15,000) within 30 days of the effective date of this Consent Decree. Payment shall be made, without further protest or recourse, by certified check, cashier's check, or money order drawn to the order of the Federal Communications Commission, shall reflect "FCC File No. ENF-95-19, NAL/Acct. No. 516EF0008," and shall be mailed to the Federal Communications Commission, P.O. Box 73482, Chicago, Illinois 60673-7482. 18. LCI agrees that it shall not submit to any LEC any PIC Change request unless LCI has complied with all Commission rules and orders concerning PIC Changes in effect or as they may be hereafter modified or amended. 19. LCI agrees that within thirty (30) days of the effective date of this Consent Decree, LCI will send a written advisory to all companies currently under contract to act as sales distributors of LCI services instructing them that it is impermissible for sales representatives to sign a LOA on a customer's behalf and that the signature on the LOA must be that of the party authorized to make the PIC change. A copy of the written advisory will be submitted to the Commission within thirty (30) days of its distribution. LCI will further require the recipients of such advisories to acknowledge in writing within fourteen (14) days of receipt of the advisory that they received the document and understand its contents. As further described in paragraph 16 below, copies of these replies will be kept on file, subject to Commission inspection, for twelve (12) months beginning on the effective date of this Consent Decree. 20. LCI agrees that within ninety (90) days of the effective date of this Consent Decree, LCI will modify its sales manuals as required to make clear that no sales representative may sign a LOA on a customer's behalf and that the signature on the LOA must be that of the party authorized to make the PIC change. Copies of the revised portions of the sales manuals will be submitted to the Commission within thirty (30) days of completion. 21. LCI agrees that within thirty (30) days of the effective date of this Consent Decree, LCI will advise its sales distributors and agents in writing that the submission of unauthorized orders may result in the termination of their distribution agreements with LCI. LCI will submit a copy of the written advisory to the Commission within thirty (30) days of its distribution. 22. For twelve (12) months beginning on the effective date of this Consent Decree, LCI agrees to maintain and make available to the Commission, within fourteen (14) days of the receipt of a written request, business records demonstrating compliance with the terms and provisions of this Consent Decree, including, but not limited to, advertisements, sales scripts, manuals or presentations, written advisories to sales distributors and agents and required responses to those advisories, Letters of Agency, PIC change records, billing records, and all consumer complaints including those filed directly with LCI and those filed against LCI in any local, state, or federal jurisdiction that LCI has actually received. The record of consumer complaints shall include the name, address and telephone number of each complainant, LCI's response, and the final disposition of each complaint. 23. In light of the covenants and representations contained in this Consent Decree, and in express reliance thereon, the Bureau agrees that adoption of this Consent Decree shall serve to resolve all allegations that are the subject of the NAL issued in the above-captioned proceeding without any finding of liability on the part of LCI and, in the absence of substantial additional and material facts, the Bureau shall not on its own motion institute against LCI new proceedings of any kind arising out of the PIC change submitted on behalf of Edna Belle Mills. Nothing in this Consent Decree shall prevent the Commission from adjudicating future complaints filed against LCI, or from instituting a new investigation or enforcement proceeding against LCI, including the revocation of LCI's blanket authority to function as a resale carrier, in the event of future misconduct. FOR THE COMMON CARRIER BUREAU FOR LCI INTERNATIONAL OF THE FEDERAL COMMUNICATIONS TELECOM CORPORATION: COMMISSION: /s/ John Muleta /s/ Lee M. Weiner John Muleta Lee Weiner Chief, Enforcement Division General Counsel Common Carrier Bureau 8/19/97 Date 8/21/97 Date /s/ B. E. Mutschelknaus Brad E. Mutschelknaus, Esq. Kelly, Drye & Warren 1200 19th Street, N.W., Suite 500 Washington, D.C. 20036 Counsel for LCI 8/19/97 Date