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

In the Matter of                   )
                              )    File No. EB-01-TC-057
Yestel, Inc.                       )    FRN No. 0007322456


          Adopted:  October 16, 2002;        Released: October 
          17, 2002

By the Chief, Enforcement Bureau:

     1.   In this Order, we adopt a Consent Decree terminating an 
investigation regarding unauthorized preferred carrier 
conversions by Yestel, Inc. (Yestel). 

     2.   The Bureau and Yestel have negotiated the terms of a 
Consent Decree that would resolve this matter and the staff's 
investigation.  A copy of the Consent Decree is attached and is 
incorporated by reference.  

     3.   We have reviewed the terms of the Consent Decree, and 
we conclude that the public interest would be served by approving 
the Consent Decree and terminating the investigation.

     4.   Based on the record before us, and in the absence of 
material new evidence relating to this matter, we conclude that 
there are no substantial and material questions of fact as to 
whether Yestel possesses the basic qualifications, including its 
character qualifications, to hold or obtain any FCC licenses or 

     5.   Accordingly, IT IS ORDERED, pursuant to sections 4(i) 
and 503(b) of the Communications Act, 47 U.S.C.  154(i), 
503(b), and the authority delegated in sections 0.111 and 0.311 
of the Commission's rules, 47 C.F.R.  0.111, 0.311, that the 
attached Consent Decree IS ADOPTED.     6.   IT IS FURTHER ORDERED that the above-captioned case as 
well as the Commission staff inquiry into the matter described 


                         David H. Solomon
                         Chief, Enforcement Bureau                         CONSENT DECREE

     7.   The Enforcement Bureau of the Federal Communications 
Commission (``FCC'' or ``Commission'') and Yestel, Inc., (Yestel) 
hereby enter into a Consent Decree terminating an informal Bureau 
investigation into possible violations of section 258 of the 
Communications Act and the Commission's rules relating to 
unauthorized preferred interexchange carrier (``PIC'') 
conversions and third party verification procedures.1  Yestel is 
a reseller of interstate interexchange telecommunications 
services as well as international telecommunications services and 
is subject to the Commission's regulations pursuant to its status 
as a common carrier.  This Consent Decree is the result of an 
informal investigation that was initiated on November 14, 2001.

     8.   For the purposes of this Consent Decree the following 
definitions shall apply:
a)   ``Commission'' or ``FCC''  means the Federal  Communications 

b)   ``Bureau'' means  the  Enforcement  Bureau  of  the  Federal 
  Communications Commission;
c)   ``Division'' means the Telecommunications Consumers Division 
  of the Enforcement Bureau;
d)   ``Yestel '' means Yestel, Inc., its successors and assigns;

e)   ``Parties'' means Yestel and the Commission or Bureau;

f)   ``Adopting Order'' means an Order of the Bureau adopting the 
  terms and conditions of this Consent Decree;

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

h)   ``Preferred carrier change'' shall mean an order or  request 
  submitted by  a carrier to a  local exchange carrier  (``LEC'') 
  to effect a change in the customer's preferred carrier;

i)   ``Informal Complaint''  or  ``Consumer Complaint''  means  a 
  complaint filed under 47 C.F.R.  1.716;

j)   ``Formal Complaint'' means a complaint filed under 47 U.S.C. 

     9.   The Parties agree that the provisions of this Consent 
Decree shall be subject to final approval by the Bureau by 
incorporation of such provisions by reference in an Adopting 
Order of the Bureau. 

     10.  The Parties agree that this Consent Decree shall become 
effective on the date on which the Bureau releases the Adopting 
Order.  Upon release, the Adopting Order and this Consent Decree 
shall have the same force and effect as any other Order of the 
Commission and any violation of the terms of this Consent Decree 
shall constitute a violation of a Commission Order entitling the 
Commission to exercise any and all rights and to seek any and all 
remedies authorized by law for the enforcement of a Commission 

     11.  Yestel admits the jurisdiction of the Commission for 
purposes of this Consent Decree and any Adopting Order.

     12.  Yestel waives any rights that it may have to further 
procedural steps and any rights it may have to seek judicial 
review or otherwise challenge or contest the validity of the 
Adopting Order or this Consent Decree.

     13.  Yestel waives any rights it may have under any 
provision of the Equal Access to Justice Act, 5 U.S.C.  504.

       Terms of Settlement

     14.  Yestel 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.  Yestel 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 Yestel respectively affirm and warrant that 
said representative is acting in his capacity and within his 
authority as a corporate officer of Yestel, and on behalf of 
Yestel and that by his signature said representative is binding 
Yestel to the terms and conditions of this Consent Decree.  
Yestel also represents that it has been represented by counsel of 
its choice in connection with this Decree and is fully satisfied 
with the representation of counsel.

     15.  Yestel 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 which engages in acts 
prohibited in this Consent Decree or for any other purpose which 
would otherwise circumvent any part of this Decree or the 
obligations of this Decree.

     16.  In consideration for the termination by the Bureau of 
its investigation into whether Yestel has violated the 
Communications Act and/or Commission rules or orders, and in 
accordance with the terms of this Consent Decree, Yestel agrees 
to the following terms.  

     17.  The Bureau and Yestel agree that this Consent Decree 
does not constitute either an adjudication on the merits or a 
factual or legal finding or determination regarding any 
compliance or noncompliance with the requirements of the 
Communications Act or the Commission's rules, including section 
258 of the Act.  The parties agree that this Consent Decree is 
for settlement purposes only and that by agreeing to this Consent 
Decree, Yestel does not admit or deny any liability for violating 
the Act or Commission rules in connection with the matters that 
are the subject of this Consent Decree. 

     18.  Yestel shall make a voluntary contribution to the 
United States Treasury in the total amount of $150,000 (one 
hundred fifty thousand dollars).  This amount shall be paid 
within 30 days of the date the order adopting this Consent Decree 
becomes final.  Such contribution shall be made, without further 
protest or recourse, by certified check, cashier's check, or 
money order drawn to the order of the Federal Communications 
Commission, and shall be mailed to the Federal Communications 
Commission, P.O. Box 73482, Chicago, Illinois 60673-7482.

     19.  Yestel agrees to reimburse in full all affected 
consumers whose long distance service was switched without 
authorization to Yestel's network.  Specifically, Yestel agrees 
to reimburse, through billing credits for unpaid balances and 
through issuance of checks for amounts already paid, all affected 
consumers the full amount of any unauthorized Yestel charges 
whether or not the consumer paid the charges in error or disputed 
them. Yestel also agrees to return affected consumers, where 
necessary, to their preferred carriers of choice and order all 
collection agencies to close out all outstanding disputes and 
remove any negative credit reports for all affected consumers. 
Furthermore, Yestel agrees to notify all affected consumers 
verbally of the unauthorized conversion and apprise them of their 
credit for Yestel charges; if after two attempts to reach the 
consumer, Yestel is unable to speak to the consumer, Yestel will 
notify the consumer in writing of the unauthorized conversion and 
credit.  No attempt will be made by Yestel personnel to market 
Yestel services to the consumer in these notification efforts. 
All preferred carrier change charges associated with the switch 
of the consumer back to his or her preferred long distance 
carrier shall be paid by Yestel.  All credits and checks will be 
issued no later than sixty (60) days from the date on which this 
Consent Decree is adopted.

     20.  In addition, Yestel agrees to ensure that all preferred 
carrier change notifications are the product of current and valid 
third party verification procedures. Yestel shall not, under any 
circumstances, rely on communications from its underlying carrier 
to effectuate a preferred carrier change for any customer, -- 
former, current, or prospective. Yestel will also create a task 
force to ensure, more generally, that information regarding 
customer records is kept current and updated monthly.  Yestel 
will meet these obligations no later than sixty (60) days from 
the date on which this Consent Decree is adopted.

     21.  Yestel agrees that it will send each consumer whose 
line was switched to Yestel without authorization, a $10.00 
prepaid Yestel calling card within sixty (60) days of the date on 
which the Consent Decree is adopted.  Yestel is giving these 
prepaid cards as an additional gesture of goodwill and apology.  
It will be made clear that acceptance and use of this prepaid 
card in no way constitutes a request by the recipient for Yestel 
direct-dial service.  Yestel shall not include marketing 
materials in this mailing.  A sample of this mailing shall be 
provided to the Bureau ten (10) calendar days before it is used.

     22.  Yestel agrees that, in the future, it shall not 
knowingly submit to any LEC any preferred carrier change request 
unless Yestel has complied with all Commission rules and orders 
concerning preferred carrier changes, in effect or as they may be 
hereafter modified or amended.  In the event that Yestel 
discovers that its procedures for acquiring customers have been 
compromised by poor communication with its underlying carrier, or 
by any actions taken by its employees or its authorized agents, 
resulting in the unauthorized conversion of a consumer's line to 
Yestel, Yestel agrees to notify such consumer verbally of the 
unauthorized conversion; if after two attempts to reach the 
consumer, Yestel is unable to speak to the consumer, Yestel will 
notify the consumer in writing of the unauthorized conversion.  
No attempt will be made by Yestel personnel to market Yestel 
services to the consumer in these notification efforts.  Yestel 
shall take any and all necessary and reasonable steps to ensure 
that the customer is promptly returned to his or her authorized 
carrier with the least possible inconvenience to the customer.  
Yestel further agrees to credit such consumer in full for all 
Yestel charges incurred between the date on which the consumer 
was switched to the Yestel network until the consumer is switched 
back if desired.  Yestel further agrees to reimburse the consumer 
for any switching fees assessed by the local exchange carrier as 
a result of the unauthorized conversion and return the consumer 
to his or her preferred carrier.

     23.  Yestel agrees to subject all of its employees and 
agents to the following oversight mechanisms to help ensure 
compliance with the Commission's regulations:  
a)   Yestel shall require each employee or agent both at the time 
  of  hiring and  at least  twice a  year thereafter  to  receive 
  formal training on  the Commission's rules regarding  preferred 
  carrier  change  requests.   Should  those  rules  and   orders 
  change, Yestel  will ensure that its  employees and agents  are 
  promptly  apprised  of  such  changes  and  that  the  training 
  material is updated to reflect the new rules.  
b)   Yestel shall observe its  employees and agents, through  on-
  site  or telephonic  monitoring,  as they  process  orders  for 
  service  and complaints  to ensure  that Yestel  employees  and 
  agents  are  operating  in  compliance  with  the  Commission's 
  preferred  carrier  change rules.   The  telephonic  monitoring 
  shall take place weekly,  with the calls monitored on a  random 
  basis.   Should Yestel  receive information  indicating that  a 
  particular employee or agent has engaged in practices that  may 
  violate  the  Commission's  preferred  carrier  change   rules, 
  either  knowingly or  inadvertently, Yestel  shall monitor  the 
  calls  of  that  agent for  a  period  of  time  sufficient  to 
  determine whether  he or  she is operating  in compliance  with 
  the  Commission's  rules  and  orders.   If  Yestel   discovers 
  noncompliance,  such agent  shall be  terminated in  accordance 
  with Yestel's standard termination procedures.
c)    Yestel shall further ensure  that its third party  verifier 
  collects   all  required   information  pursuant   to   section 
  64.1120(c)(3)(iii) of the Commission's rules.

     24.  While this Consent Decree is in effect, Yestel agrees 
to maintain and make available to the Bureau, on a quarterly 
basis and within 14 days of the receipt of any specific written 
request from the Bureau, business records demonstrating 
compliance with the terms and provisions of this Consent Decree.  

     25.  In light of the covenants and representations in this 
Consent Decree, and in particular, in light of the fact that 
Yestel apparently took steps to correct the problem causing the 
unauthorized preferred carrier conversions shortly after it was 
discovered, the Bureau agrees to terminate its investigation into 
unauthorized conversions described above, without any finding of 
liability on the part of Yestel.  The Bureau further agrees that, 
in the absence of substantial additional and material facts, the 
Bureau shall not on its own motion institute against Yestel new 
proceedings of any kind relating to any allegation of 
unauthorized preferred carrier changes that may have occurred as 
a result of the unlawful actions described above and up to the 
date on which this Consent Decree is adopted.

     26.  Nothing in this Consent Decree shall prevent the 
Commission from adjudicating complaints against Yestel for 
alleged misconduct regarding unauthorized preferred carrier 
changes or for any other type of alleged misconduct regardless of 
when such misconduct took place, or from instituting new 
investigations or enforcement proceedings against Yestel in the 
event of alleged future misconduct.  If such enforcement 
proceeding is initiated, Yestel's earlier conduct may be adduced, 
but not for the purpose of assessing monetary forfeitures.

     27.  The Parties agree that any provision of the Consent 
Decree that conflicts with any subsequent rule or order adopted 
by the Commission will be superseded by such Commission rule or 

     28.  The Parties agree that this Consent Decree shall expire 
in three (3) years from the release date of the Order adopting 
this Consent Decree. Yestel shall issue a report to the Bureau 
within 60 days from the release date demonstrating compliance 
with the terms and provisions herein.

     29.  This Consent Decree may be signed in counterparts.

For the Enforcement Bureau,                                   For 
Yestel, Inc. 
Federal Communications Commission            

____________________________            ________________________
David H. Solomon                             Robert Wu
Chief                                        President

____________________________            ________________________
Date                                    Date


     11.   See 47 C.F.R.  64.1100; 64.1120.