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Docket No. 94129 (#(# S'Telecommunications Act of 1996hhCq)  Sp'` `  hhCq)pp  SH 'MCI WorldCom, Inc. ` XhhCq)(#h  S 'Request for Waiver hhCq)(#  S '  S 'm ORDER  \Adopted: August 4, 1999 `a(#!Released: August 6, 1999 \By the Deputy Chief, Common Carrier Bureau:  S'  I. INTRODUCTION AND BACKGROUND Đ\  S'1. ` ` In its Carrier Change Orders,Dt ^ {O'ԍImplementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act  {O'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  {O'Carriers, CC Docket No. 94129, Report and Order, 10 FCC Rcd 9560 (1995), stayed in part, 11 FCC Rcd 856  {Oz'(1995); Policies and Rules Concerning Changing Long Distance Carriers, CC Docket No. 9164, 7 FCC Rcd  {OD'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)  {O'(the Reconsideration Order denied reconsideration of both the Allocation Order and the Waiver Order).D the Commission adopted rulesV ^ yO4'ԍ47 C.F.R.  64.1100 64.1190.V 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  S'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.  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", 0*''(("  S'toll service except in accordance with such procedures as the Commission shall prescribe."Dq yOh'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.x`Xq yOX'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  {O 'verification rules. See Section 258 Order at paras. 145146; WATS International Corp. v. Group Long Distance  {Oz '(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  S'procedures before submitting carrier changes on behalf of subscribers." q 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.` ` 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  SJ 'specific authorization and verification. J q yO'ԍOn July 21, 1999, MCI filed a Petition for Expedited Waiver of Commission's Rules. On July 26, 1999, MCI WorldCom withdrew that petition and filed another Petition for Expedited Waiver of Commission's Rules. On July 29, 1999, MCI withdrew the petition filed on July 26, 1999 and filed another Petition for Expedited Waiver of Commission Rules (Waiver Petition). 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.  S '  S 'J" II. DISCUSSION \  SZ'4.` ` Waiver of the Commission's rules is appropriate only if special circumstances warrant  S2'a deviation from the general rule, and such a deviation will serve the public interest.o2q {O'ԍWAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969).o 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"Bp0*&&((" 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  S'service provider.Xq {O'ԍSee Waiver Petition at Exhibit A.X This letter also informed customers of tollfree 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  S'at any time.f Zq {O 'ԍSee Attachment A; Waiver Petition at Exhibit B.f  Sp'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  S 'conditions will adequately protect the rights of LDI's customers.  q yO 'ԍWe note that MCI states that LDI will continue to investigate, respond, and attempt to cure any  {O'complaints filed by LDI customers. See Waiver Petition at 2, n.2.   S0'  III. CONCLUSION AND ORDERING CLAUSES   S'\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. "xF 0*&&(("  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 MCI WorldCom, Inc. on July 29, 1999 IS GRANTED to the extent, and pursuant to the conditions, indicated herein.  S'8.` ` 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;g &P#"  0*&&(( "  S' '>   S' '> V Attachment A ă  S8'   Figure 1 1 [[TTI LOGO HERE]]  Q'#&C%YkP2Q r&P#  Q'Welcome To TTI National!  R' "W Were 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. Wed like to welcome you with a special gift of up  " to 100 free minutes of statetostate directdial calling over a threemonth 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 8935094.  M '# &Q2PQ&P#  R' " #&C%YkP2Q r&P# Count On Us For Savings. # C\  P6Q/P# #&C%YkP2Q r&P#Youll 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, youll benefit from our  " low cost, highquality international outbound service which is available automatically with your  " TTI National long distance service. (In addition, countrytocountry 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.  Rz' "  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  R+' " 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  Q'one, please call TTI National Customer Service at 1 800 8935094 .  R' "N  Were At Your Service. To confirm that TTI National is your long distance service  " provider, please dial 1 700 555 4141 (a tollfree 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 8935094.  " 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  R%%'your former LDI customer service center at 1 888 9287736. # XI%YkP2QXP#"%% 0*&&((['"Ԍ"%% 0*&&((u'"Ԍ R^$' "0 #&C%YkP2Q r&P#Once again, were delighted to welcome you to TTI National, your single source for reliable  "~ communications services at outstanding savings. We appreciate your business, and look"6% 0*&&(('"  R6%'forward to serving you for many years to come.# XI%YkP2QXP#"6% 0*&&(('"Ԍ R'#&C%YkP2Q r&P#  R`'Sincerely,  <<,Z# XI%YkP2QXP#  H8A#6X@DQF"@# Drop in signatureZDD #XI%YkP2QXP#  {M!'#=%YkP2Q:>P#George Hampton Vice President  yO'G#C\  P6Q/P#See reverse side  ^y4!- #U%YkP2QP# TTI National PerMinute Rates#XI%YkP2QXP#  Q'  #&C%YkP2Q r&P#For All InState Outbound and TollFree Calls# =%YkP2Q:>P#  {M[ '  V# ' #XI%YkP2QXP#(Statetostate rate is 7.9 cents per minute)  V '  oH sX` hp x (#%'0*,.8135@8: