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____________________________________________________________________________________ fv #C\  P6QP#Before the  yO'  FEDERAL COMMUNICATIONS COMMISSION  yO'9}Washington, D.C. 20554#&J\  P6Q&P#   S0'\ #XP\  P6Q9XP##&J\  P6Q&P#  S'In the Matter of hhCq) pp  S'` `  hhCq) pp  S'Implementation of the Subscriber Carrierq)  S'Selection Changes Provisions of thehhCq)ppCC Docket No. 94129 (#(# Sh'Telecommunications Act of 1996hhCq)  S@'` `  hhCq)pp  S 'Citizens Telecommunications Companyq)  S 'Alliance Group Services, Inc.hhCq)pp  S 'Joint Request for WaiverhhCq)  S '  Sx 'm ORDER   S('\Adopted: July 30, 1999hhCqppReleased: July 30, 1999 \By the Deputy Chief, Common Carrier Bureau:  S'  I. INTRODUCTION AND BACKGROUND Đ\  S8'1. ` ` In its Carrier Change Orders,Dt 8q {O'ԍImplementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act  {Oj'of 1996 and Policies and Rules Concerning Unauthorized Changes of Consumers' Long Distance Carriers, CC Docket No. 94129, Further Notice of Proposed Rule Making and Memorandum Opinion and Order on Reconsideration, 12 FCC Rcd 10674 (1997), Second Report and Order and Further Notice of Proposed Rule  {O'Making, 14 FCC Rcd 1508 (1998) (Section 258 Order), stayed in part, MCI WorldCom v. FCC, No. 991125  {O'(D.C. Cir. May 18, 1999); Policies and Rules Concerning Unauthorized Changes of Consumers' Long Distance  {OX'Carriers, CC Docket No. 94129, Report and Order, 10 FCC Rcd 9560 (1995), stayed in part, 11 FCC Rcd 856  {O"'(1995); Policies and Rules Concerning Changing Long Distance Carriers, CC Docket No. 9164, 7 FCC Rcd  {O'1038 (1992), reconsideration denied, 8 FCC Rcd 3215 (1993) (PIC Change Recon. Order); Investigation of  {O'Access and Divestiture Related Tariffs, CC Docket No. 831145, Phase I, 101 F.C.C.2d 911 (Allocation Order),  {O'101 F.C.C.2d 935 (Waiver Order), reconsideration denied, 102 F.C.C.2d 503 (1985) (Reconsideration Order)  {OJ'(the Reconsideration Order denied reconsideration of both the Allocation Order and the Waiver Order).D the Commission adopted rulesV8 q yO'ԍ47 C.F.R.  64.1100 64.1190.V applicable to carriers changing a consumer's preferred carrier. In this order, we grant Citizens Telecommunications Company (CTC) and Alliance Group Services, Inc. (Alliance) (collectively "petitioners") a limited  S'waiver of the authorization and verification requirements of the Commission's rules and Carrier  S'Change Orders to enable Alliance to change the preferred carrier of those consumers currently  Sv'presubscribed to CTC from CTC to Alliance.v q yO%'ԍCTC is the interexchange subsidiary of Citizens Utilities Company.#Jz PQP#њ "N$0*''(("Ԍ S'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  S'toll service except in accordance with such procedures as the Commission shall prescribe."DH yO'ԍ47 U.S.C.  258.D The goal of section 258 is to eliminate the practice of "slamming," which is 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  S'verification procedures.xXH yO 'ԍThe Commission's rules and orders clearly contemplate that a switchless reseller may be a customer's preferred carrier. Therefore, changes to a customer's preferred carrier that do not involve a change in the customer's underlying facilitiesbased carrier are nonetheless subject to the Commission's authorization and  {O8 'verification rules. See Section 258 Order at paras. 145146; WATS International Corp. v. Group Long Distance  {O '(USA), Inc., 12 FCC Rcd 1743, 1752 (1997) (citing PIC Change Recon. Order, 8 FCC Rcd at 3218). x In the recently issued Section 258 Order, the Commission revised its procedures to ensure that carriers obtain the requisite authority prior to changing a customer's carrier. The Commission requires that carriers follow one of the Commission's prescribed verification  Sr'procedures before submitting carrier changes on behalf of subscribers."r H yO'ԍPursuant to these procedures, carriers must: (1) obtain the subscriber's written authorization; (2) obtain confirmation from the subscriber via a tollfree number provided exclusively for the purpose of confirming  {O'orders electronically; or (3) utilize an independent third party to verify the subscriber's order. See 47 C.F.R.  64.1150.  S" '3.` ` CTC and Alliance request a waiver of our verification rules to allow them to transfer CTC's subscribers to Alliance's customer base without first obtaining each subscriber's authorization  S 'and verification.X H yOh'ԍOn May 21, 1999, CTC and Alliance filed a Joint Petition for Waiver. On June 18, 1999, CTC and Alliance filed an Amended Joint Petition for Waiver of Sections 64.110064.1190 of the Commission's Rules (Joint Waiver Petition).  Because we conclude that, under the circumstances presented, it is in the public interest to grant the waiver, we grant CTC and Alliance's Joint Waiver Petition subject to the  S 'conditions represented in its filing. q  SZ'  S2'J! II. DISCUSSION \  S'4.` ` Waiver of the Commission's rules is appropriate only if special circumstances warrant  S'a deviation from the general rule, and such a deviation will serve the public interest.oH {Op!'ԍWAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969).o We find that the petitioners have made a showing of good cause to grant a waiver of the requirements in the Commission's carrier change rules and orders for those consumers who have authorized CTC as their preferred carrier. The petitioners have demonstrated that special circumstances exist that would warrant a waiver. The petitioners explain that several years ago CTC expanded its long distance"0*&&((" services beyond the central service areas (CSAs) of its affiliated Incumbent Local Exchange Carriers (ILECs). Subsequently, CTC decided to limit the geographic scope of its serving areas to the CSAs of its own ILECs. Rather than terminating service after the provision of notice to the affected customers, CTC contracted with Alliance to provide service on Alliance's network to CTC's "out of CSA" business customers after CTC withdraws from the affected areas. Pursuant to their agreement, on May 14, 1999, Alliance became the underlying carrier for CTC's customers, as well as CTC's agent for  S'customer service and billing. H yOx'ԍIn other words, CTC remained the preferred interexchange carrier, but was reselling Alliance's service.  {O@'See Joint Waiver Petition at 3. Once the actual transfer takes place, CTC's customers will be transferred to Alliance, such that Alliance will become the preferred interexchange carrier for the affected customers.  Sp'5.` ` We also conclude that CTC and Alliance have shown that granting this request is in the public interest. The petitioners believe that a grant of this waiver petition will help to ensure that CTC's customers are transferred to Alliance without a disruption in their service. Without this waiver, CTC's customers are at risk of either losing service or of being charged substantially higher rates than those they received from CTC. The petitioners have already sent each affected customer a letter advising them that they will begin to receive service from CTC on Alliance's network, that they will receive lower rates under the new arrangement, that CTC's customers will be transferred to Alliance pending regulatory approval, and that they may elect to choose a new long distance carrier instead of remaining with Alliance. Affected customers will receive another letter from the petitioners informing them that their service is being provided by CTC on Alliance's network and that, upon completion of the transfer of customer accounts from CTC to Alliance, they will continue to receive the same service and rates from Alliance that they were receiving from CTC while Alliance was the underlying carrier. Furthermore, Alliance has indicated that it will pay any charges assessed by local exchange carriers for changing the affected customers' preferred interexchange carrier. Alliance will also investigate, respond to, and attempt to cure any complaints of former CTC customers that are filed after the sale. After the transfer of CTC's customers to Alliance, Alliance will send a welcoming letter to all of CTC's customers informing them of the assumption of their service by Alliance.   S'  III. CONCLUSION AND ORDERING CLAUSES   SP'\6.` ` For the foregoing reasons, we grant CTC and Alliance 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 petitioners' provision of the customer notification and handling of customer inquiries and complaints described above and further detailed in the Joint Waiver Petition.  S'7.` ` 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 Citizens Telecommunications Company and Alliance Group Services, Inc. on May 21, 1999, and amended on June 18, 1999, IS GRANTED to the extent indicated herein. "!" 0*&&(( "Ԍ S'ԙ8.` ` IT IS FURTHER ORDERED that this Order is effective upon its release. ` `  hhCq ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCRobert C. Atkinson  S'` `  hhCDeputy Chief, Common Carrier Bureau #&a\  P6G;&P#