Report No. CC 98-44   COMMON CARRIER ACTION     December 16, 1998

 MINIMUM RATE PRICING TO PAY $1.2 MILLION TO U.S. TREASURY AND
                 CHANGE ITS BUSINESS PRACTICES;
 MRP Enters Into Consent Decree To Resolve Slamming Complaints
                                
       In a Consent Decree released today, Minimum Rate Pricing, Inc. (MRP) adopted changes
to its business practices and agreed to make voluntary payments to the U.S. Treasury that total
$1.2 million.  Today's Consent Decree, which contains the largest voluntary payment in any FCC
slamming-related consent settlement to date, details measures MRP will take to protect
consumers against having their long distance carrier changed without their authorization, a
practice known as "slamming."

       Today's Consent Decree is the product of an investigation conducted this year by FCC
staff concerning numerous recent slamming allegations against MRP.  In October 1997, the
Common Carrier Bureau proposed an $80,000 forfeiture against MRP for apparently substituting
itself as the long distance company for two consumers without their authorization.  After the
affected customers returned to their preferred carriers, MRP then apparently took action to switch
the customers back to MRP based upon automatic switch-back provisions in its tariff. 

       MRP subsequently eliminated its switch-back provisions, but the Bureau continued its
investigation into other slamming-related issues concerning MRP's business and marketing
practices.  Today's Consent Decree culminates the FCC's investigation.  MRP, whose principal
place of business is Bloomfield, New Jersey, did not admit any wrongdoing in this proceeding. 

       In addition to MRP's $1.2 million payment to the U.S. Treasury, highlights of the Consent
Decree include the following:

o      MRP will not conduct outbound telemarketing of its services prior to January 1, 1999. 
After that date, if MRP elects to use outbound telemarketing it will only do so under the strict
terms of the Consent Decree, which delineates the information that MRP must clearly and
conspicuously disclose to customers prior to signing them up.  MRP will also comply with
employee training requirements to carry out these provisions, which are intended to ensure that
customers solicited by MRP understand fully what they are being offered.

o      MRP may not put into effect any automatic switch-back provision.

o      MRP may only compare its rates to other carriers' rates in compliance with strict
requirements designed to ensure that consumers are not misled.

o      In all outbound telemarketing, MRP must use an independent third party verifier to verify
each and every switch to MRP.  MRP must also discontinue any incentive payments to third-party
verifiers, including commissions, based upon the number of customers switched.

o      In accordance with a timetable, MRP must submit to the FCC reports detailing its
compliance with the Consent Decree.  

       Beginning today, the Consent Decree will be in effect for three years.  If MRP violates the
terms of the Consent Decree or any other FCC rules, the Commission may initiate an immediate
hearing to revoke MRP's operating authority.

                             - FCC _

       Action by the Common Carrier Bureau, December 16, 1998.

       News media contact:  Rochelle Cohen at (202) 418-0253.
              Common Carrier Bureau contacts:  Lisa Choi at (202) 418-1384 or Colleen Heitkamp 
            at 418-0974.
       TTY: (202) 418-2555.