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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 ) ) Sprint Communications Company, L.P. ) Petition for Waiver ) ORDER Adopted: October 20, 1999 Released: October 20, 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 Sprint Communications Company, L.P. (Sprint LP) a limited waiver of the authorization and verification requirements of the Commission's rules and Carrier Change Orders to enable Sprint LP to change the preferred carrier of those consumers currently presubscribed to Trans National Communications, Inc. (TNC) to Sprint LP. 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 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. Sprint LP requests a waiver of our verification rules to allow them to transfer subscribers of TNC to Sprint LP's customer base without first obtaining each subscriber's authorization and verification. Because we conclude that, under the circumstances presented, it is in the public interest to grant the waiver, we grant Sprint LP's Petition for Waiver subject to the conditions represented in their 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 Sprint LP 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 TNC as their preferred carrier. Sprint LP has demonstrated that special circumstances exist that would warrant a waiver. On or about August 11, 1999, Sprint Corp. and Sprint LP filed a complaint in the United States District Court requesting that the court issue a judgment against TNC for the amount owed under two promissory notes. They also requested that the court appoint a receiver to take immediate possession and control of TNC's business operations. On October 19, 1999, the receiver conducted a foreclosure sale of TNC's assets, which included a base of approximately 160,000 customers. Sprint Corp. acquired TNC's customer base at the foreclosure sale and will transfer TNC's customers to Sprint LP shortly thereafter. 5. We also conclude that Sprint LP has shown that granting this request is in the public interest. Sprint LP argues that, given the size of TNC's active subscriber base, it is unlikely that Sprint LP will be able to obtain the verification of each of TNC's subscribers after the foreclosure sale, but before the conversion of TNC's customer base to Sprint LP. Therefore, granting this waiver will protect customers against the possibility of losing their long distance service or being charged potentially higher dial-around rates. Sprint LP plans to send notification letters to the affected customers immediately upon the granting of this order. Thus, TNC's customers will have been notified of their change in carriers prior to the receipt of their first Sprint bill. The notification letter will inform subscribers that Sprint LP has purchased TNC's customer base; that they will continue to receive the same service at the same rates and under the same terms and conditions as they received with TNC's service; that they are free to change carriers; and that they will not incur any fees in connection with the transfer of their service. In addition, the letter will inform customers of a toll free number to call with any questions concerning the transaction. Finally, Sprint LP has agreed to resolve any complaints customers may have had related to the service provided by TNC prior to the conversion to Sprint LP. 6. Sprint LP sought expedited treatment of its Waiver Petition because, at the time the petition was filed, the foreclosure sale of TNC's assets was scheduled to take place on or about October 15, 1999. As noted above, the foreclosure sale took place on October 19, 1999 and Sprint LP acquired TNC's customer base at the sale. We believe that a prompt grant of this waiver will help to ensure that all affected TNC customers are transferred to Sprint LP without any interruption in their long distance service. We conclude, therefore, that it is in the public interest that Sprint LP's request for expedited treatment be granted. III. CONCLUSION AND ORDERING CLAUSES 7. For the foregoing reasons, we grant Sprint LP 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 Sprint LP's provision of customer notification and handling of customer inquiries and complaints described above and further detailed in Sprint LP's Waiver Petition. 8. 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 Sprint Communications Company, LP on September 21, 1999, IS GRANTED to the extent indicated herein. 9. IT IS FURTHER ORDERED that this Order is effective upon its release. FEDERAL COMMUNICATIONS COMMISSION Robert C. Atkinson Deputy Chief, Common Carrier Bureau