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


In the Matter of                 )
                                )
Primus Telecommunications, Inc.  )
                                )    File No. EB-03-TC-162 
                                )     NAL/Acct. No. 200432170006
Compliance with the              )    FRN: 0004317798
Commission's                     )
Rules and Regulations Governing  )
the National Do-Not-Call         )
Registry

                              ORDER

Adopted: September 3, 2004                                        
Released: September 7, 2004

By the Chief, Enforcement Bureau:

     1.   In this  Order, we  adopt the  attached Consent  Decree 
entered  into   between  the   Enforcement  Bureau   and   Primus 
Telecommunications,  Inc.  (``Primus'').    The  Consent   Decree 
terminates an investigation initiated  by the Enforcement  Bureau 
regarding potential non-compliance  by Primus  with the  National 
Do-Not-Call  Requirements  contained  in   Section  227  of   the 
Communications Act of 1934, as amended (the ``Act'') and  Section 
64.1200 of the Commission's rules.1

     2.   The Enforcement Bureau and  Primus have negotiated  the 
terms of  a Consent  Decree that  would resolve  this matter  and 
terminate the investigation.   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 adopting  the 
Consent Decree and terminating the investigation.

     4.   Accordingly, IT IS ORDERED, pursuant to Section 4(i) of 
the Communications Act  of 1934, as  amended,2 that the  attached 
Consent Decree IS ADOPTED.


     5.   IT  IS   FURTHER  ORDERED   that  the   above-captioned 
Commission investigation  into the  matters described  herein  is 
terminated. 


                         FEDERAL COMMUNICATIONS COMMISSION



                         David H. Solomon
                         Chief, Enforcement Bureau
                           Before the
                FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C. 20554


In the Matter of                )                 
                                )
Primus Telecommunications, Inc. )       File No. EB-03-TC-162
                                )
Compliance with the Commission's)       FRN:  0004317798
Rules and Regulations Governing ) 
the National Do-Not-Call Registry  )


                         CONSENT DECREE

I. INTRODUCTION

     1.   The Enforcement Bureau (``Bureau'') of the Federal 
Communications Commission (the ``FCC'' or ``Commission'') and 
Primus Telecommunications, Inc. (``Primus''), by their authorized 
representatives, hereby enter into this Consent Decree for the 
purpose of terminating the Bureau's investigation into possible 
noncompliance by Primus with the requirements of Section 227 of 
the Communications Act of 1934, as amended (the ``Act'') and 
Section 64.1200(c) of the Commission's Rules.3 


II.BACKGROUND

     2.   Primus, headquartered in McLean, Virginia, is the 
principal U.S. operating subsidiary of Primus Telecommunications 
Group, Inc., a global facilities-based telecommunications 
services provider offering international and domestic voice, 
Internet and data services to business and residential retail 
customers, as well as to other carriers.  Primus holds numerous 
authorizations to provide telecommunications services from the 
FCC and state public utility commissions.  Approximately 40 
percent of Primus's sales come from telemarketing to consumers.  
Primus does not engage, however, in direct telemarketing to 
residential consumers.  In September 2003, Primus hired a third 
party telemarketer, Spanco Telesystems & Solutions, Ltd. 
(``Telemarketer''), to conduct telemarketing on its behalf.
 
     3.   In a letter to Primus dated December 17, 2003, the 
Bureau commenced an investigation concerning Primus's 
telemarketing practices to residential consumers in connection 
with calls made on behalf of the company to consumers who had 
registered their telephone numbers on the National Do-Not-Call 
Registry.4

     4.   During the course of the Investigation, Primus provided 
written responses to the Letters of Inquiry on January 23, 2004, 
March 11, 2004, and April 27, 2004.  Primus represents that 
before the National Do-Not-Call rules became effective, it had 
developed and implemented an internal system designed to ensure 
that no telemarketing calls would be placed to consumers who had 
placed their names on the National Do-Not-Call Registry, and it 
submitted a description of its internal system and procedures for 
implementing the National Do-Not-Call requirements.  Further, 
Primus established that it had paid for and properly accessed the 
National Do-Not-Call Registry database as soon as it became 
available.    Upon receipt of the Dec. 17 Letter of Inquiry, 
Primus represents that it instructed its Telemarketer to halt 
outbound telemarketing on Primus's behalf.


III. DEFINITIONS

     5.   For purposes of this Consent Decree, the following 
definitions shall apply:

          1.a.      ``Act'' means the Communications Act of 1934, 
            as amended.

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

          1.c.      ``Commission''     means     the      Federal 
            Communications Commission. 

          1.d.      ``Effective date'' means the date on which 
            the Bureau releases the Adopting Order.

          1.e.      ``Investigation'' means the investigation and 
            any related proceedings commenced by the Bureau's 
            Letter of Inquiry, December 17, 2003, to Primus 
            regarding possible noncompliance by Primus with the 
            requirements contained in Section 227 of the Act and 
            Section 64.1200(c) of the Commission's Rules during 
            the period of October 1, 2003, through December 31, 
            2003, which possible noncompliance with Section 227 
            and Section 64.1200(c) shall include, for purposes 
            of this Consent Decree, all complaints that were or 
            could have been made against Primus for 
            telemarketing calls made during the same period.

          1.f.      ``Order'' or ``Adopting Order'' means an 
            Order of the Bureau adopting the terms and 
            conditions of this Consent Decree without change, 
            addition, or modification, and formally terminating 
            the above-captioned Investigation.

          1.g.      ``Parties'' means Primus and the Bureau.

          1.h.      ``Primus'' means Primus Telecommunications, 
            Inc. and any telecommunications carrier subsidiary, 
            successor, or telecommunications carrier controlled 
            by Primus Telecommunications, Inc. 


IV.AGREEMENT

     6.   Primus agrees that the Bureau has jurisdiction over it 
and the subject matter contained in this Consent Decree and the 
authority to enter into and adopt this Consent Decree.
     
     7.   The Parties agree and acknowledge that this Consent 
Decree shall constitute a final settlement of the Investigation 
between Primus and the Bureau.  In express reliance on the 
covenants and representations contained herein, the Bureau agrees 
to terminate the Investigation.  In consideration for the 
termination of this Investigation and in accordance with the 
terms of this Consent Decree, Primus agrees to the terms, 
conditions and procedures contained herein.

     8.   The Parties 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 by Primus with the requirements of the Act or the 
Commission's rules or orders.  The Parties agree that this 
Consent Decree is for settlement purposes only and that by 
agreeing to this Consent Decree, Primus does not admit or deny 
any noncompliance, violation or liability associated with or 
arising from its actions or omissions involving the Act or the 
Commission's rules that are the subject of this Consent Decree.

     9.   In consideration for the termination of the 
Investigation in accordance with the terms of this Consent 
Decree, Primus agrees to voluntarily implement a Telemarketing 
Compliance Program consisting of the components delineated below.
 
        (a) Not later than 30 days after the Effective Date, 
            Primus will adopt written policies and procedures 
            regarding outbound telemarketing campaign management 
            and the creation, approval and distribution to 
            telemarketing companies engaged by Primus 
            (``Telemarketing Companies'' and each a 
            ``Telemarketing Company'') of lists of potential 
            customers and telephone numbers (``Call Lists'').  
            Primus will also adopt written policies, which shall 
            be available upon request, for maintaining its 
            internal Do-Not-Call list.  Primus's written 
            policies and procedures, which will be memorialized 
            in a Telemarketing Compliance Manual, will include 
            the following requirements:

            (i) All Call Lists shall be scrubbed against a 
                version of the National Do-Not-Call Registry 
                that has been obtained from the administrator of 
                the Registry not more than 31 days prior to the 
                date of any call made on Primus's behalf and a 
                version of Primus's in-house do-not-call list 
                (``Primus Do-Not-Call List'') that has been 
                updated by Primus not more than 30 days prior to 
                the date of any call made on Primus's behalf;

            (ii)    No outbound telemarketing campaign may be 
                initiated on Primus's behalf without prior 
                written authorization from Primus confirming 
                that the Call Lists have been scrubbed against 
                the National Do-Not-Call Registry and the Primus 
                Do-Not-Call List;

            (iii)   The Telemarketing Company shall generate and 
                transmit to Primus on a daily basis compliance 
                reports containing data on all do-not-call 
                complaints and requests received by the vendor; 
                and

            (iv)    Each outbound telemarketing campaign shall be 
                monitored for compliance by Primus through the 
                audit procedures described in Para. 9(g), below.

        (b) Not later than 30 days after the Effective Date, 
            Primus will provide the Telemarketing Compliance 
            Manual to its employees involved in telemarketing 
            and in the customer service department.  Primus will 
            require these employees to acknowledge in writing 
            that they have read, understand, and will abide by 
            the policies and procedures in the Telemarketing 
            Compliance Manual.
          
        (c) Not later than 30 days after the Effective Date, 
            Primus will provide the Telemarketing Compliance 
            Manual to Telemarketing Companies.  Primus will 
            require each Telemarketing Company to sign an 
            acknowledgement that it has read, understands, and 
            will abide by the policies and procedures in the 
            Telemarketing Compliance Manual.

        (d) Not later than 30 days after the Effective Date, 
            Primus will commence training of its employees 
            involved in telemarketing campaign management and 
            its customer service representatives.  The training 
            will include the following components:

            (i) Distribution to employees of written training 
                materials, including: Primus's Telemarketing 
                Compliance Manual, a ``FAQs'' document providing 
                answers to frequently asked questions about the 
                National Do-Not-Call rules and the Primus Do-
                Not-Call List; flow charts depicting the process 
                customer service representatives are required to 
                follow when receiving a do-not-call request or 
                complaint; and a copy of Primus's written policy 
                for complying with National Do-Not-Call rules 
                and maintaining the Primus Do-Not-Call List.

            (ii)    A training session given by the Primus Do-
                Not-Call Team (which consists of Primus's Vice 
                President for Customer Care, Systems 
                Administrator, Marketing Manager, and Regulatory 
                Attorney), which will explain Primus's policies 
                and procedures for telemarketing compliance and 
                permit its employees to ask questions about the 
                policies and procedures.  Primus will require 
                these employees to acknowledge in writing that 
                they have attended the training session and 
                understand and will abide by Primus's policies 
                and procedures.  

            (iii)   Primus will require new employees involved in 
                telemarketing campaign management and hired as 
                customer service representatives to complete 
                such training within the first week of 
                employment.  Primus will require all employees 
                involved in telemarketing campaign management 
                and all customer service representatives to 
                attend refresher training at least once a year.

        (e) Not later than 30 days after the Effective Date, 
            Primus will prepare and distribute an Escalation 
            Alert document that will identify the data criteria 
            by which Primus will evaluate Telemarketing Company 
            Reports or Customer Care Reports (see Para. 9(g) 
            (audit procedures) below) and, if such criteria are 
            met, will trigger escalation of the report to the 
            next level of telemarketing compliance management.  
            The Escalation Alert document will identify for each 
            level of escalation the Primus manager (and an 
            alternate) to whom such report shall be forwarded 
            and the minimum timeframe within which notification 
            shall be made.  The Escalation Alert document will 
            identify a clear path of successive levels of 
            escalation, which will ensure that Primus can 
            promptly identify and respond to data indicating a 
            failure or potential failure of telemarketing 
            compliance.  The ``Escalation Alert'' process will 
            be administered by Primus.

         (f)   Primus's contracts with Telemarketing Companies 
            will provide that: 

            (i) The Telemarketing Company shall comply with all 
                applicable federal and state telemarketing laws 
                and requirements, including the requirement that 
                the Telemarketing Company use a process to 
                prevent unauthorized use of the National Do-Not-
                Call database and refrain from participating in 
                cost-sharing arrangements;

            (ii)    The Telemarketing Company shall comply with 
                Primus's policies and procedures set forth in 
                Primus's Telemarketing Compliance Manual, 
                including the requirement that the Telemarketing 
                Company maintain and preserve all reports and 
                records required by law, and all supplemental 
                instructions from Primus;

            (iii)   The Telemarketing Company shall transmit to 
                Primus on a daily basis reports that identify 
                and provide data for each complaint or request 
                relating to do-not-call and other telemarketing 
                issues (``Telemarketing Company Reports''); and

            (iv)    Primus will take appropriate action in the 
                event that any Telemarketing Company Report or 
                any other source establishes that a 
                Telemarketing Company has failed to follow its 
                legal obligations or Primus's policies with 
                respect to the Commission's Do-Not-Call rules.  
                Violation of such legal obligations and Primus's 
                policies shall be grounds for termination of the 
                Telemarketing Company's contract with Primus. 

        (g) Not later than 60 days after the Effective Date, 
            Primus will implement procedures to audit compliance 
            with the Commission's Do-Not-Call rules, through the 
            following procedures and additional measures to be 
            determined by Primus:

            (i) Telemarketing Company Reports. Primus will 
                require its Telemarketing Companies to provide 
                the Primus Do-Not-Call Team a daily written 
                report containing data for each and every 
                complaint or request relating to do-not-call and 
                other telemarketing issues received by the 
                Telemarketing Company.

            (ii)    Customer Care Reports. Primus will require 
                its Vice President of Customer Care to provide 
                the Primus Do-Not-Call Team a weekly report 
                containing data for each and every do-not-call 
                complaint and request to be placed on the Primus 
                Do-Not-Call List received by Primus's customer 
                service representatives.

            (iii)   Telemarketing Campaign Management Reports. 
                Primus will require the Primus Do-Not-Call Team 
                to issue to the Legal Department and Vice 
                President for Customer Service, a weekly report 
                summarizing the status of compliance for each 
                active telemarketing campaign, which report 
                shall be based upon the daily Telemarketing 
                Company Reports and weekly Customer Care 
                Reports.

            (iv)    ``Failsafe'' mechanisms designed to prevent 
                noncompliance due to human error.  These 
                mechanisms may include ``seeding'' Call Lists 
                with names of Primus representatives who are 
                registered on the National Do-Not-Call Registry 
                and/or the Primus Do-Not-Call List; the 
                testing/auditing of the Telemarketing Company's 
                response to verbal requests by Primus employees 
                not to be called again and to be placed on 
                Primus's Do-Not-Call list; monitoring of the 
                Telemarketing Company's responses to questions 
                about the Do-Not-Call requirements.

        (h) Not later than 30 days after the Effective Date, 
            Primus will create a register that centralizes all 
            compliance reports and telemarketing agreements 
            associated with each Primus telemarketing campaign.  
            Primus will designate a register manager, who will 
            be responsible for maintaining and updating the 
            register.

        (i) Not later than 60 days after the Effective Date, and 
            every 180 days thereafter, Primus will submit a 
            written report to the Bureau of its compliance with 
            this Consent Decree, including in the first report, 
            its progress in implementing its Compliance Program. 

        (j) Primus will not commence telemarketing until the 
            Compliance Program has been implemented and will 
            give the Bureau not less than 14 days prior written 
            notice of its intent to commence telemarketing.

        (k) Primus will maintain and make available to the 
            Bureau, within 14 days of receipt of any specific 
            request from the Bureau, business records 
            documenting its compliance with the terms and 
            provisions of this Consent Decree.

        (l) Primus will give the Bureau 30 days prior written 
            notice of any change in its legal status, including 
            a name change, a change of control, merger, 
            reorganization, or dissolution.
             
     10.  Primus agrees to make a voluntary contribution to the 
United States Treasury, without further protest or recourse to a 
trial de novo, in the amount of $400,000 within ten (10) business 
days after the Effective Date of the Adopting Order.  The payment 
must be made by check or similar instrument, payable to the order 
of the Federal Communications Commission.  The payment must 
include the Acct. No. and FRN No. referenced above.  Payment by 
check or money order may be mailed to Forfeiture Collection 
Section, Finance Branch, Federal Communications Commission, P.O. 
Box 73482, Chicago, Illinois, 60673-7482.  Payment by overnight 
mail may be sent to Bank One/LB 73482, 525 West Monroe, 8th Floor 
Mailroom, Chicago, IL 60661.  Payment by wire transfer may be 
made to ABA Number 071000013, receiving bank Bank One, and 
account number 1165259. 

     11.  The Bureau agrees that it will not use the facts 
developed in this Investigation through the Effective Date or the 
existence of this Consent Decree to initiate, on its own motion, 
any new proceeding, formal or informal, or take any action on its 
own motion against Primus, including any other enforcement 
action, nor will the Bureau seek any administrative or other 
penalties from Primus concerning the matters that were the 
subject of the Investigation.  The Bureau also agrees that it 
will not use the facts developed in the Investigation through the 
Effective Date or the existence of this Consent Decree to 
initiate, on its own motion, any proceeding, formal or informal, 
or take any action on its own motion against Primus with respect 
to Primus's basic qualifications to be a Commission licensee.  
Consistent with the foregoing, nothing in this Consent Decree 
limits the Commission's authority to consider and adjudicate any 
formal 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.

     12.  Primus's decision to enter into this Consent Decree is 
expressly contingent upon the Bureau's issuance of an Order that 
is consistent with this Consent Decree, and which adopts the 
Consent Decree without change, addition or modification.

     13.  Provided the Bureau issues an Order adopting the 
Consent Decree without change, addition or modification, Primus 
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.

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

     15.  By this Consent Decree, Primus neither waives nor 
alters 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.

     16.  Primus agrees that any violation of the Order or of 
this Consent Decree shall constitute a separate violation of a 
Commission order, entitling the Commission to exercise any rights 
and remedies attendant to the enforcement of a Commission order. 

     17.  The Parties agree that if any provision of this Consent 
Decree conflicts with any subsequent rule or order adopted by the 
Commission (except an order specifically intended to revise the 
terms of this Consent Decree to which Primus does not consent), 
that provision will be superceded by such Commission rule or 
order.

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

     19.  This Consent Decree may be signed in counterparts.


For: Primus Telecommunications, Inc. 


_________________   ___________________________________________
Date           Walter L. Stone


For: Enforcement Bureau
     Federal Communications Commission


_________________   ___________________________________________
Date           David H. Solomon
_________________________

1 47 U.S.C.  227; 47 C.F.R.  64.1200.

2 47 U.S.C.  154(i).

3  47 U.S.C.  227; 47 C.F.R.  64.1200(c).

4  See Letter from Kurt A. Schroeder, Deputy Chief, 
   Telecommunications Consumers Division, Enforcement Bureau, 
   Federal Communications Commission, to Paul K. Singh, Primus, 
   dated December 17, 2003 (``Dec. 17 Letter of Inquiry''); see 
   also Letter from Kurt A. Schroeder, Deputy Chief, 
   Telecommunications Consumers Division, Enforcement Bureau, 
   Federal Communications Commission, to Walter L. Stone, Primus, 
   dated February 20, 2004 (``Feb. 20 Letter of Inquiry'', 
   together with the Dec. 17 Letter of Inquiry, ``Letters of 
   Inquiry'').