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


In the matter of                 )
                                )
ASC Telecom, Inc. d/b/a          )
Alternatel                       )
                                )    File No. EB-02-TC-136
                                )    NAL/Acct. No. 200232170006
                                )    FRN: 0004372835
Operator Service Provider        )
Requirements                     )


                              ORDER

   Adopted:  March 11, 2004                       Released:  
March 19, 2004

By the Commission:

     1.   In this Order, we adopt a Consent Decree terminating an 
investigation into  possible  violations  by  ASC  Telecom,  Inc. 
("ASC"), d/b/a/ Alternatel, of Section 226 of the  Communications 
Act of 1934, as amended (the ``Act''), and the Commission's rules 
governing operator service providers.1  

     2.   The Commission and ASC have  negotiated the terms of  a 
Consent Decree that would resolve  this matter and terminate  the 
investigation.2  A copy of the Consent Decree is attached  hereto 
and incorporated by reference.

     3.   After reviewing  the terms  of the  Consent Decree,  we 
find that the public  interest would be  served by approving  the 
Consent Decree and terminating the investigation.

     4.   Accordingly, IT IS ORDERED, pursuant to Sections  4(i), 
4(j), and 503(b) of the Communications Act of 1934, as  amended,3 
that the attached Consent Decree IS ADOPTED.

     5.   ASC shall make its voluntary contribution to the United 
States Treasury by mailing a check or similar instrument, payable 
to the order  of the  Federal Communications  Commission, to  the 
Federal Communications Commission, Forfeiture Collection Section, 
Finance Branch, P.O. Box 73482, Chicago, Illinois 60673-7482. The 
payment should  reference  NAL/Acct.  No.  200232170006  and  FRN 
0004372835.

     6.   IT IS FURTHER ORDERED that the Commission investigation 
into the matter described herein is terminated.


                         FEDERAL COMMUNICATIONS COMMISSION




                         Marlene H. Dortch
                         Secretary                           Before the 
                Federal Communications Commission
                     Washington, D.C.  20554


In the Matter of                  )   File No. EB-03-TC-136
                                 )   NAL/Acct. No. 2002321700006
ASC Telecom, Inc. d/b/a/          )   FRN:  0004372835
Alternatel                        )
Operator Service Provide          )
Requirements                      )


                         CONSENT DECREE

I.   INTRODUCTION

     1.   The Federal Communications  Commission (the ``FCC''  or 
the  ``Commission'')  and  ASC  Telecom,  Inc.  d/b/a  Alternatel 
(``ASC''),4 by their authorized representative, hereby enter into 
this Consent Decree to resolve two investigations and a Notice of 
Apparent Liability (``NAL'')5 (together, the  ``Investigations'') 
by the  Commission  regarding non-compliance  with  the  operator 
service provider  (``OSP'')  requirements contained  in  Sections 
226(b)(1)(A), (b)(1)(B), (b)(1)(C)(i), and Section 201(b) of  the 
Communications  Act  of  1934,  as  amended  (the  ``Act''),  and 
Sections 64.703(a)(1), (a)(2), and (a)(3)(i) of the  Commission's 
rules.6  The Investigations were undertaken pursuant to  Sections 
4(i) and 403 of the Act.7

     2.   ASC provides  operator services  that can  be  accessed 
through  aggregator   telephones  across   the  United   States.8 
Aggregator phones include  phones in  hotel and  motel rooms,  as 
well as payphones located  in airports, train stations,  shopping 
malls, gas stations,  and other  locations where  they serve  the 
public or transient users. ASC  states that it provides  operator 
services over its ``Hospitality Platform,'' which accommodates  a 
number of customer  choices regarding  payment method,  including 
FONCARD, collect, third party, other carriers' calling cards  and 
major credit  cards.  As an  operator  service provider,  ASC  is 
required for  all  operator  services calls  to  identify  itself 
audibly  and   distinctly  at   the   beginning  of   each   call 
(``branding'')9, before the consumer incurs any charge; to permit 
the consumer to  terminate the  call at  no charge  before it  is 
connected; and to provide its rates to consumers upon request.10

     3.   On September  23, 2002,  the Commission,  following  an 
investigation, issued  the  NAL.  The  NAL  found  that  ASC  had 
apparently violated the Act and the Commission's rules  regarding 
OSPs on certain toll free access codes.11  Also on September  23, 
2002, the  Enforcement  Bureau of  the  FCC issued  a  Letter  of 
Inquiry regarding ASC's provisioning of operator services.12

     4.   In the Investigations, and  subsequent to the  issuance 
of the NAL, ASC represented that at one time it had contracted to 
provide  Operator  Services  to  certain  customers   (``Contract 
Customers'') that owned or controlled Other Access Codes but that 
it voluntarily had severed these contractual relationships  prior 
to gaining any knowledge on its  part that the FCC had  initiated 
the Investigations. ASC represents that it did not own any  Other 
Access Codes before or after the NAL was issued.

     5.   Further, ASC  represents that  it did  not develop  any 
distinct  branding  or  rate  disclosure  practices  specific  to 
handling calls placed  through Other  Access Codes  and that  the 
procedures set  forth  in  ASC's submissions  to  the  Commission 
regarding branding  and rate  disclosure for  OSP-assisted  calls 
fully comply  with applicable  legal requirements.   ASC  further 
represents that there  was no  intent, purpose or  scheme on  its 
part to deceive or mislead customers through improper branding or 
rate disclosures.  

II.  DEFINITIONS

     6.   For the Purposes of this Consent Decree, the  following 
     definitions shall apply:

     (a)  The ``FCC''  or the  ``Commission'' means  the  Federal 
     Communications Commission and all bureaus and offices of the 
     Commission, including the Enforcement Bureau.

     (b)  ``Bureau'' means the Enforcement Bureau of the  Federal 
     Communications Commission.

     (c)  ``ASC'' or  the ``Company''  means ASC  Telecom,  Inc., 
     d/b/a Alternatel, and any affiliate, d/b/a,  predecessor-in-
     interest,  parent  companies  and  any  direct  or  indirect 
     subsidiaries of such parent  companies, or other  affiliated 
     companies or businesses, and their successors and assigns.

     (d)  ``Parties'' means  ASC and  the Federal  Communications 
          Commission.    

     (e)  ``OSPs''  means  providers  of  operator  services,  as 
     defined by the Act and the Commission's rules.13

     (f)  ``Other Access  Codes''  means toll-free  access  codes 
     that  differ  from  1-800-COLLECT  (1-800-265-5328),  1-800-
     CALLATT (1-800-225-5288), or 1-800-OPERATOR  (1-800-673-7286 
     (7)) by no more than one digit.

     (g)  ``Adopting Order''  means an  Order of  the  Commission 
     adopting the  terms and  conditions of  this Consent  Decree 
     without change, addition or modification.

     (h)  ``Effective  Date''  means  the   date  on  which   the 
     Commission adopts the Adopting Order.

     (i)  ``Hospitality Platform'' means the ASC/Sprint  operator 
     services platform designed and utilized to service primarily 
     Aggregator phones.

     (j)  Notice of Apparent  Liability (``NAL'')  means the  NAL 
     adopted on  September 23,  2002, ASC  Telecom, Inc.,  d/b/a/ 
     Alternatel, Notice of Apparent Liability for Forfeiture,  17 
     FCC Rcd 18654 (2002).

III.      AGREEMENT

     7.   ASC represents  and warrants  that it  is the  properly 
named party  to  this  Consent  Decree and  is  solvent  and  has 
sufficient funds available to meet fully all financial and  other 
obligations set forth herein. ASC further represents and warrants 
that it has  caused this  Consent Decree  to be  executed by  its 
authorized representative, as a true act and deed, as of the date 
affixed   next   to   said   representative's   signature.   Said 
representative and ASC respectively affirm and warrant that  said 
representative is acting in  his/her capacity and within  his/her 
authority as a corporate officer of ASC, and on behalf of ASC and 
that by his/her signature said  representative is binding ASC  to 
the terms and conditions of this Consent Decree.

     8.   ASC agrees that the Commission has jurisdiction over it 
and  the  matters  contained  in  this  Consent  Decree  and  the 
authority to enter into and adopt this Consent Decree.

     9.   ASC will make  a voluntary contribution  to the  United 
States Treasury in the amount of one hundred twenty-five thousand 
dollars  ($125,000.00)  within   14  calendar   days  after   the 
Commission Order adopting this Consent Decree becomes final.  ASC 
must make this payment  by check, wire  transfer, or money  order 
drawn to the order of the Federal Communications Commission,  and 
the check, wire transfer,  or money order  should refer to  ``NAL 
Acct. No. 200232170006.'' If ASC  makes this payment by check  or 
money  order,  it  must  mail  the  check  or  money  order   to:  
Forfeiture   Collection   Section,   Finance   Branch,    Federal 
Communications Commission,  P.O.  Box 73482,  Chicago,  Illinois, 
60673-7482. If ASC makes this  payment by wire transfer, it  must 
wire such payment  in accordance with  Commission procedures  for 
wire transfers. 

     10.  For purposes of settling the matters set forth  herein, 
ASC agrees to take the actions described below:

     (a)  ASC will not knowingly provide, and will not enter into 
     an agreement  to  knowingly provide,  Operator  Services  on 
     calls initiated over Other Access Codes.

     (b)  ASC will  require any  agreement  it enters  into  with 
     other operator service providers  to preclude such  provider 
     from delivering to ASC any calls initiated over Other Access 
     Codes.

     (c)  ASC  agrees  that  it  will  institute  the   following 
     ``Compliance Plan'' as set  forth below, beginning no  later 
     than 30 days after the Effective Date:

          (i)  ASC will require each  new employee hired to  work 
          as an operator to undergo training prior to  processing 
          operator service calls.  For purposes  of this  section 
          10(c), the  term ``operator''  shall mean  an  operator 
          processing calls via tollfree  access codes over  ASC's 
          Hospitality  Platform.  Such   training  will   include 
          materials  emphasizing  the   need  for  complete   and 
          accurate  branding,   rate   disclosure,   and   lawful 
          processing of operator service calls.

          (ii) ASC will provide,  on an  annual basis,  refresher 
          training to  its  operators.  Such  refresher  training 
          shall  review  the  need  for  complete  and   accurate 
          branding, rate  disclosure,  and lawful  processing  of 
          calls and to provide ongoing training as necessary.

          (iii)     ASC will  on  a  biannual  basis,  audit  the 
          performance of  the  operators, and  such  audit  shall 
          include real-time monitoring of actual calls. The audit 
          results for individual operators may be used by ASC  to 
          take corrective or disciplinary  action as ASC, in  its 
          sole judgment, deems appropriate.

          (iv) ASC will require  those employees supervising  the 
          operators to supervise  in a manner  that will  promote 
          the provision of accurate and lawful operator services.

Nothing in this Compliance Plan shall alter ASC's obligation to 
otherwise comply with the Act
and with the Commission's rules and orders.

     11.  Within 90  days  from  the  Effective  Date,  ASC  will 
provide a formal report to the Bureau of its compliance with this 
Consent Decree, including progress in implementing its Compliance 
Program. ASC also  agrees to  send to  the Bureau,  upon 30  days 
after receiving  a  written request  from  the Bureau,  a  report 
updating its  compliance  efforts  with regard  to  this  Consent 
Decree.

     12.  In   express    reliance   on    the   covenants    and 
representations  contained  herein,  the  Commission  agrees   to 
terminate the Investigations concerning compliance with  Sections 
226(b)(1)(A), (b)(1)(B), (b)(1)(C)(i) and  Section 201(b) of  the 
Act, and  Sections  64.703(a)(1),  (a)(2) and  (a)(3)(i)  of  the 
Commission's rules and resolve the Investigations, including  the 
NAL.  By this Consent Decree, the Notice of Apparent Liability is 
cancelled, the apparent  findings in the  NAL are withdrawn,  and 
the NAL has no legal force or effect.

     13.  The Parties  agree and  acknowledge that  this  Consent 
Decree shall constitute a final settlement of the Investigations. 
The Commission  agrees  that,  in the  absence  of  new  material 
evidence related  to  this matter,  it  will not  use  the  facts 
developed in the Investigations or the existence of this  Consent 
Decree, on  its  own motion,  to  initiate any  new  proceedings, 
formal or  informal, or  take any  actions, including  any  other 
enforcement action, against ASC, nor will the Commission, on  its 
own motion, seek any administrative  or other penalties from  ASC 
based on  these Investigations.  Consistent with  the  foregoing, 
nothing in this Consent Decree limits the Commission's  authority 
to consider  and  adjudicate  any complaint  that  may  be  filed 
pursuant to Section 208 of the Act, 47 U.S.C. § 208, and to  take 
any action in response to such complaint.

     14.  ASC waives  any and  all  rights it  may have  to  seek 
administrative or  judicial reconsideration,  review, appeal,  or 
stay, or to otherwise challenge  or contest the validity of  this 
Consent Decree  and  the  Order  adopting  this  Consent  Decree, 
provided the  Order adopts  the  Consent Decree  without  change, 
addition, or modification.

     15.  ASC's decision  to enter  into this  Consent Decree  is 
expressly contingent upon  the issuance of  an Adopting Order  by 
the Commission that is consistent  with this Consent Decree,  and 
which adopts  the Consent  Decree  without change,  addition,  or 
modification.

     16.  ASC represents and  warrants that it  shall not  effect 
any change in its  form of doing  business or its  organizational 
identity or participate directly or indirectly in any activity to 
form a  separate  entity  or corporation  that  engages  in  acts 
prohibited in this Consent Decree or for any other purpose  which 
would otherwise circumvent any part of this Consent Decree or the 
obligations of this Consent Decree.

     17.  In the  event  that  this Consent  Decree  is  rendered 
invalid by any court of  competent jurisdiction, it shall  become 
null and void  and may not  be used  in any manner  in any  legal 
proceeding.

     18.  The Parties also  agree that if  any provision of  this 
Consent Decree  conflicts  with  any  subsequent  rule  or  order 
adopted by the  Commission, where compliance  with the  provision 
would result in a violation of the subsequent rule or order, that 
provision will be superseded by such Commission rule or order.

     19.  By this Consent Decree, ASC does not waive or alter its 
right to  assert  and  seek protection  from  disclosure  of  any 
privileged or otherwise confidential and protected documents  and 
information, or to seek appropriate safeguards of confidentiality 
for any competitively sensitive  or proprietary information.  The 
status of materials  prepared for, reviews  made and  discussions 
held  in  the  preparation   for  and  implementation  of   ASC's 
compliance  efforts  under  this  Consent  Decree,  which   would 
otherwise be privileged or confidential,  are not altered by  the 
execution or implementation of the terms of this Consent  Decree, 
and no waiver of such privileges is made by this Consent  Decree. 
When the  Commission  is legally  able  to return  any  documents 
submitted by  ASC as  part of  the Investigations  pursuant to  a 
request for confidential  treatment, the  Commission agrees  that 
upon ASC's request, it will return such documents within 30  days 
of such request.

     20.  If either Party (or the United States on behalf of  the 
Commission) brings a judicial action to enforce the terms of  the 
Adopting Order, neither ASC nor the Commission shall contest  the 
validity of the Consent Decree or the Adopting Order, and ASC and 
the Commission will waive any statutory right to a trial de  novo 
with respect  to the  issuance of  the Adopting  Order and  shall 
consent to a  judgment incorporating  the terms  of this  Consent 
Decree.

     21.  The Parties  agree that  this Consent  Decree does  not 
constitute either an adjudication on  the merits or a factual  or 
legal finding regarding any compliance or noncompliance with  the 
requirements of the Act  and the Rules.   The Parties agree  that 
this Consent Decree is for  settlement purposes only and that  by 
agreeing  to  this  Consent  Decree,  ASC  does  not  admit   any 
wrongdoing, non-compliance,  or  violation  of  the  Act  or  the 
Commission rules  in connection  with the  matters that  are  the 
subject of this Consent Decree.  

     22.  ASC agrees that any violation of the Consent Decree  or 
the Adopting  Order will  constitute a  separate violation  of  a 
Commission order, entitling the Commission to exercise any rights 
or remedies attendant to the enforcement of a Commission order.

     23.  The Parties agree that the requirements of this Consent 
Decree shall  expire thirty-six  (36) months  from the  Effective 
Date.

     24.  This Consent Decree may be signed in counterparts.
For the Federal Communications Commission    For ASC Telecom, 
Inc.



By:______________________________  By:  
______________________________
   Marlene H. Dortch                    Michael Hyde
   Secretary                            Vice President and 
Secretary


   ______________________________       
______________________________
   Date                                 Date



_________________________

1  47  U.S.C.  §§   226(b)(1)(A),  (b)(1)(C)(i);  47  C.F.R.   §§ 
64.703(a)(1), (a)(3)(i), (a)(4).
2 See ASC  Telecom, Inc.  d/b/a/ Alternatel,  Notice of  Apparent 
Liability for Forfeiture, 17 FCC Rcd 18654 (2002). 
3 47 U.S.C. §§ 154(i), 154(j), 503(b).
4    ASC is  an indirect  subsidiary of  Sprint Corporation.  See 
ASC's 2002 FCC Form 499-A Telecommunications Reporting Worksheet. 
ASC is located at 6200 Sprint Parkway, Overland Park, KS 66251.
     The definitions of the term ASC and other defined terms are 
set forth in Section II of this decree.

5    ASC Telecom,  Inc.  d/b/a  Alternatel,  Notice  of  Apparent 
Liability for Forfeiture, 17 FCC Rcd 18654 (2002).
6    47 U.S.C. §§ 226(b)(1)(A), (b)(1)(B), (b)(1)(C)(i); §201(b); 
47 C.F.R. §§ 64.703(a)(1), (a)(2), (a)(3)(i).
7    47 U.S.C. §§ 154(i), 403.
8    ``Operator  services''  are  defined  by  the  Act  and  the 
Commission's rules as ``any interstate telecommunications service 
initiated  from  an  aggregator  location  that  includes,  as  a 
component, any  automatic or  live assistance  to a  consumer  to 
arrange for  billing or  completion, or  both, of  an  interstate 
telephone call  through  a  method  other  than:   (A)  automatic 
completion with  billing to  the telephone  from which  the  call 
originated; or (B) completion through an access code used by  the 
consumer, with billing to an account previously established  with 
the carrier by the consumer.''  47 U.S.C. § 226(a)(7)(A)-(B);  47 
C.F.R. §§  64.708(i)(1)-(2). An  ``aggregator'' is  ``any  person 
that, in the ordinary course of its operations, makes  telephones 
available to the public  or to transient  users of its  premises, 
for interstate  telephone  calls  using a  provider  of  operator 
services.'' 47 U.S.C. § 226(a)(2); 47 C.F.R. §64.708(b).
9    ``Branding'' occurs  when  an OSP  ``identif[ies]  [itself], 
audibly  and  distinctly,   to  the  consumer.''   47  U.S.C.   § 
226(b)(1)(A); 47  C.F.R. §  64.703(a)(1). See  also Policies  and 
Rules  Concerning  Operator  Service  Access  and  Pay  Telephone 
Compensation, Notice  of  Proposed  Rulemaking, 6  FCC  Rcd  1448 
(1991). 
10   47  U.S.C.  §§  226(b)(1)(A),  (b)(1)(B),  (b)(1)(C)(i);  47 
C.F.R.  §§   64.703(a)(1),  (a)(2),   (a)(3)(i).  The   FCC   has 
interpreted the statute  to permit  branding to  occur after  the 
input of billing  information if operator  service providers  use 
automated equipment that under certain circumstances transfers  a 
call to another carrier. This  ensures ``that the consumer  hears 
only the brand of  the OSP who is  actually handling the  call.'' 
Policies and Rules Concerning Operator Service Providers, CC Dkt. 
90-313¸ Order  on Reconsideration¸  7  FCC Rcd  3882, ¶¶  1,  5-9 
(1992).
11   ``Access code''  means ``a  sequence of  numbers that,  when 
dialed, connect the caller to  the provider of operator  services 
associated with that sequence.'' 47 U.S.C. § 226(a)(1); 47 C.F.R. 
§ 64.708(a).
12   See   Letter    from    Colleen    K.    Heitkamp,    Chief, 
Telecommunications  Consumers   Division,   Enforcement   Bureau, 
Federal  Communications  Commission  to  Richard  Juhnke,   Vice-
President, Federal Regulatory Affairs,  ASC Telecom, Inc.,  d/b/a 
Alternatel, September 23, 2002.
13   See 47 U.S.C. § 226(a)(9); 47 C.F.R. § 64.708(l).