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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 ) ) Implementation of the Subscriber Carrier ) Selection Changes Provisions of the ) CC Docket No. 94-129 Telecommunications Act of 1996 ) ) MCI WorldCom, Inc. ) Request for Waiver ) ORDER Adopted: August 4, 1999 Released: August 6, 1999 By the Deputy Chief, 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 MCI WorldCom, Inc. (MCI WorldCom) a limited conditional waiver of the authorization and verification requirements of the Commission's rules and Carrier Change Orders to enable MCI WorldCom to change the preferred carrier of those consumers currently presubscribed to Long Distance International, Inc. (LDI) from LDI to TTI National, Inc. (TTI National), a subsidiary of MCI WorldCom. 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," 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 verification procedures. 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 procedures before submitting carrier changes on behalf of subscribers. 3. MCI WorldCom requests a waiver of the Commission's verification rules to allow it to transfer LDI's subscribers to TTI National's customer base without first obtaining each subscriber's specific authorization and verification. Because we conclude that, under the circumstances presented, it is in the public interest to grant the waiver, we grant MCI WorldCom's Waiver Petition subject to the conditions represented in its filing. II. DISCUSSION 4. Waiver of the Commission's rules is appropriate only if special circumstances warrant a deviation from the general rule, and such a deviation will serve the public interest. We find that MCI WorldCom has 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 LDI as their preferred carrier. MCI WorldCom has demonstrated that special circumstances exist that would warrant a waiver. In its Waiver Petition, MCI WorldCom explains that it has agreed to purchase certain assets of LDI, including, but not limited to, all U.S.-based long distance customer accounts prior to LDI's shut down of its U.S. operations. LDI has sent its customers a letter notifying them that, beginning on or about August 1, 1999, all "1+" calls from telephone lines previously served by LDI will be completed by TTI National, and that customers are free to select a different long distance service provider. This letter also informed customers of toll-free numbers to call to ask questions about the transaction. As a condition of this waiver, MCI WorldCom has committed that the rates to be charged to consumers will be the same as or better than the rates those consumers are currently paying to LDI, and that MCI WorldCom will pay any charges incurred by customers as a result of this change. MCI has also committed to send a second letter to each customer (attached as Attachment A) informing them of these commitments and explaining that the customer is free to select another carrier at any time. 5. We also conclude that MCI WorldCom has shown that granting its request is in the public interest. MCI WorldCom states that a grant of this Waiver Petition will help to ensure that LDI's customers are transferred to TTI National without a disruption in their service. Without this waiver, LDI's customers are at risk of either losing their long distance service or of being charged substantially higher rates than those they received from LDI. Furthermore, as described above, LDI and MCI WorldCom have implemented a notification plan for LDI customers. We conclude that these conditions will adequately protect the rights of LDI's customers. III. CONCLUSION AND ORDERING CLAUSES 6. For the foregoing reasons, we grant MCI WorldCom, Inc. a limited waiver of the authorization and verification requirements of the Commission's rules to the extent necessary to allow it to transfer Long Distance International, Inc.'s customers to TTI National, Inc., a subsidiary of MCI WorldCom, Inc., without first obtaining each subscriber's authorization and verification. The grant of this waiver is conditioned upon MCI WorldCom, Inc.'s provision of customer notification, provision of service to Long Distance International, Inc.'s customers at the same or better rates than those of Long Distance International, Inc., and handling of customer inquiries, as described above and further detailed in the Waiver Petition. 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 MCI WorldCom, Inc. on July 29, 1999 IS GRANTED to the extent, and pursuant to the conditions, indicated herein. 8. IT IS FURTHER ORDERED that this Order is effective upon its release. FEDERAL COMMUNICATIONS COMMISSION Robert C. Atkinson Deputy Chief, Common Carrier Bureau Attachment A [[TTI LOGO HERE]] Welcome To TTI National! We're delighted to welcome you to TTI National, your new long distance telephone service provider. As announced in previous correspondence, TTI National has replaced Long Distance International (LDI) as your long distance service provider, offering an exclusive package of quality services at very competitive rates. We'd like to welcome you with a special gift of up to 100 free minutes of state-to-state direct-dial calling over a three-month period. Please note that these free minutes must be used within your first three months of service with TTI National, beginning August 1, 1999. In addition, TTI National will issue a credit for the charge your local phone company may impose to switch your long distance service to TTI National. To request credit, please have your local phone bill handy (showing the PIC Change Charge) and call Customer Service at 1 800 893-5094. Count On Us For Savings. You'll be amazed at what you will save with TTI National. Making long distance phone calls with TTI National is easy, too. Call anywhere in the United States by dialing 1+ area code + number. No special access numbers are needed, current domestic rates are attached. And, if you happen to call internationally, you'll benefit from our low cost, high-quality international outbound service which is available automatically with your TTI National long distance service. (In addition, country-to-country calling overseas, and calling back to the U.S., are available on request.) From TTI National, you will receive rates and services that are the same or better than those which you were receiving from LDI. Optional Calling Cards. If you currently have an LDI calling card, a new TTI National calling card will be sent to you as a replacement in a separate mailing. Once you receive your new card, please dispose of your LDI card immediately. If you would like additional TTI National calling cards, or do not have a calling card and would like to order one, please call TTI National Customer Service at 1 800 893-5094. We're At Your Service. To confirm that TTI National is your long distance service provider, please dial 1 700 555 4141 (a toll-free call) from all phone lines that have been switched from LDI to TTI National. You should hear a recording that welcomes you to the MCI WorldCom network, which carries TTI National traffic. If you do not hear this message please call Customer Service at 1 800 893-5094. The professional customer service team at TTI National is equipped to assist you with questions about your new long distance service or monthly billing. However, should you require assistance with any previous LDI services or past LDI billing issues, please contact your former LDI customer service center at 1 888 928-7736. Once again, we're delighted to welcome you to TTI National, your single source for reliable communications services at outstanding savings. We appreciate your business, and look forward to serving you for many years to come. Sincerely, Drop in signature George Hampton Vice President See reverse side TTI National Per-Minute Rates For All In-State Outbound and Toll-Free Calls (State-to-state rate is 7.9 cents per minute) State Rate State Rate Alabama $.0900 Nebraska $.2000 Arizona $.1200 Nevada $.1000 Arkansas $.1200 New Hampshire $.1200 California $.0625 New Jersey $.0750 California (IntraLATA) $.0520 New Jersey (IntraLATA) $.0650 Colorado $.1500 New Mexico $.1900 Connecticut $.0900 New York $.1000 Delaware $.0750 New York (IntraLATA) $.0900 Florida $.1050 North Carolina $.1400 Georgia $.1000 North Dakota $.1900 Georgia (IntraLATA) $.0950 Ohio $.0850 Idaho $.1700 Ohio (IntraLATA) $.0825 Illinois $.0800 Oklahoma $.1050 Illinois (IntraLATA) $.0400 Oregon $.1100 Indiana $.0950 Pennsylvania $.1200 Indiana (IntraLATA) $.0900 Pennsylvania (IntraLATA) $.1000 Iowa $.1300 Rhode Island $.1350 Kansas $.1050 South Carolina $.1100 Kentucky $.1250 South Dakota $.1750 Louisiana $.0900 Tennessee $.1150 Maine $.2500 Texas $.1400 Maryland $.0950 Utah $.1000 Massachusetts $.0975 Vermont $.1600 Massachusetts (IntraLATA) $.0640 Virginia $.1200 Michigan $.0900 Washington $.1100 Michigan (IntraLATA) $.0850 West Virginia $.1350 Minnesota $.1250 Wisconsin $.1000 Mississippi $.0950 Wisconsin (IntraLATA) $.0850 Missouri $.1900 Wyoming $.1450 Montana $.1500 TTI National Calling Plan: Outbound and Toll-Free Per-minute rate for state-to-state calls: 7.9 cents. In-state rates shown above. Calls are billed in 6-second increments after initial 18 seconds. TTI National Calling Card Per-minute rate for calling card calls (state-to-state and in-state): 14.9 cents. Domestic calls are billed in 6-second increments after initial 60 seconds. TTI National International Service Per-minute rates for more than 200 countries are available from Customer Service. International calls are billed in 6-second increments after initial 60 seconds. As a result of recent regulatory reforms, a 26-cent surcharge applies to calls completed from payphones-- and certain other special lines-- using calling cards, toll-free numbers, prepaid phonecards or operator assistance. These calls are identified on your TTI National invoice with the word "payphone" printed under each call. Rates above filed with FCC and state commissions. Rates do not include Presubscribed Interexchange Carrier Charge and the Federal Universal Service Fee. Rates and charges provided pursuant to TTI National, Inc. tariffs are subject to change.