[Federal Register Volume 62, Number 157 (Thursday, August 14, 1997)]
[Rules and Regulations]
[Pages 43477-43481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21527]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket 94-129; FCC 97-248]


Unauthorized Changes of Consumer's Long Distance Carriers

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission adopted a combined Further Notice of Proposed 
Rule Making and Memorandum Opinion and Order on Reconsideration which 
amends the Commission's rules and policies governing the unauthorized 
switching of subscribers' primary interexchange carriers (PICs), an 
activity more commonly known as ``slamming.'' In the Order on 
Reconsideration, the Commission disposes of six petitions for 
reconsideration of its 1995 Report and Order, and amends its rules 
regarding changes in subscribers' long distance carriers in three 
respects. The Commission's decision is intended to deter and ultimately 
eliminate unauthorized changes in subscribers' long distance carriers.

EFFECTIVE DATE: January 12, 1998 except for Sec. 64.1150 which will 
become effective upon approval by the Office of Management and Budget. 
The Commission will publish a document at a later date announcing the 
effective date.

FOR FURTHER INFORMATION CONTACT: Cathy Seidel, Enforcement Division, 
Common Carrier Bureau (202) 418-0960.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Memorandum Opinion and Order on Reconsideration in CC Docket No. 94-129 
[FCC 97-248], adopted on July 14, 1997 and released on July 15, 1997. 
The full text of the Order on Reconsideration is available for 
inspection and copying during normal business hours in the FCC 
Reference Center, Room 239, 1919 M Street, N.W., Washington, D.C. The 
complete text of this decision may also be purchased from the 
Commission's duplicating contractor, International Transcription 
Services, 1231 20th Street, N.W., Washington, D.C.

Summary of Memorandum Opinion and Order on Reconsideration

I. Background

    1. The Commission first established safeguards to deter slamming 
when equal access was implemented in 1985. By 1992, because the 
interexchange market had become more competitive, the need for 
additional safeguards to deter slamming increased. Therefore, the 
Commission adopted rules requiring that all IXCS institute one of four 
verification procedures before submitting a carrier change request 
generated through telemarketing on behalf of a customer. 7 FCC Rcd 1038 
(1992), recon. denied, 8 FCC Rcd 3215 (1993). In 1994, the Commission 
on its own motion and in response to continuing complaints from 
subscribers regarding slamming, instituted a rule making and adopted 
rules in its 1995 Report and Order 10 FCC Rcd 9560, 60 FR 35846 (July 
12, 1995), establishing further anti-slamming safeguards to deter 
misleading letters of agency (LOAs). A LOA is a document signed by a 
subscriber which states that a

[[Page 43478]]

particular carrier has been selected as that subscriber's preferred 
carrier. Despite the Commissions anti-slamming efforts, the number of 
written slamming complaints received by the Commission in 1995 was 
11,278, which represents a six-fold increase over the number of such 
complaints received in 1993. That number has continued to rise; over 
16,000 such complaints were received in 1996. Shortly after, the 
adoption of the 1995 Report and Order the Commission, on its own 
motion, stayed its 1995 Report and Order insofar as it extends the PIC-
change verification requirements set forth in Sec. 64.1100 of the 
Commission's rules to consumer-initiated or in-bound telemarketing 
calls. The stay was imposed before the effective date of the 1995 
Report and Order. The consumer-initiated or in-bound telemarketing 
provision is the only component of its anti-slamming rules that the 
Commission stayed. The stay of this provision of the 1995 Report and 
Order remains in effect.

II. Discussion

    2. Six parties filed petitions for reconsideration of the 
Commission's 1995 Report and Order. Allnet sought clarification or, in 
the alternative, reconsideration of the language in Sec. 64.1150(e)(4) 
to reflect the terms ``interLATA'' and ``intraLATA'' instead of 
``interstate'' and ``intrastate,'' respectively. AT&T, MCI and Sprint 
sought reconsideration and reversal of the Commission's decision to 
extend PIC-change verification requirements to consumer-initiated 
calling. MCI also sought reconsideration of the Commission's decision 
to permit the use of LOAs that double as checks. Frontier sought 
reconsideration of the Commission's LOA rules, maintaining that the 
rules should not apply to consumers who have executed written contracts 
to obtain an IXC's services. Finally, NAAG sought reconsideration of 
several aspects of the 1995 Report and Order. Specifically, NAAG urged 
the Commission: (1) To eliminate, as a general rule, any liability for 
consumers if the switching IXC cannot document that the consumer 
authorized the switch in accordance with the law; (2) to modify 
Sec. 64.1150 to require that: (a) LOAs be on a document separate from 
any promotional material, not just separable by a perforation; (b) 
combined check/LOAs be prohibited, unless additional safeguards are 
required; (c) if an LOA is provided in connection with any promotion, 
all or part of which is in a language other than English, the LOA must 
also be provided in that other language; and (d) any promotion in which 
any inducements to switch long distance service are in a language other 
than English, must contain a full explanation and make all disclosures 
in each language used to make the inducements; and (3) to modify 
Sec. 64.1100(d)(8) to eliminate the negative option in accordance with 
paragraph 11 of the 1995 Report and Order and Sec. 64.1150(f).
    3. The Commission modifies its rules regarding changes in 
subscribers' long distance carriers in three respects. First, the 
Commission modifies Sec. 64.1150(g) to clarify that carriers using 
letters of agency (LOAs) must fully translate their LOAs into the same 
language(s) as their associated promotional materials or oral 
descriptions and instructions. Second, the Commission modifies 
Sec. 64.1150(e)(4) to incorporate the terms interLATA and intraLATA, as 
well as interstate and intrastate, in order to remove possible 
confusion or uncertainty about the scope of the Commission's rules, 
which are generally relevant to all jurisdictions. Third, the 
Commission modifies Sec. 64.1100(a) to clarify that carriers must 
confirm change orders for long distance service generated by 
telemarketing using only one of the four verification options of 
Sec. 64.1100. Aside from these modifications and seeking further 
comment in the accompanying Further Notice of Proposed Rule Making, the 
Commission otherwise declines to adopt the positions urged by 
petitioners.

III. Final Regulatory Flexibility Analysis

    4. As required by section 603 of the Regulatory Flexibility Act 
(RFA), 5 U.S.C. 603, an Initial Regulatory Flexibility Analysis (IRFA) 
was incorporated in the Notice of Proposed Rule Making (NPRM) in the 
Policies and Rules Concerning Unauthorized Changes of Consumers' Long 
Distance Carrier, 9 FCC Rcd. 6885 (1994). The Commission sought written 
public comment on the proposals in the NPRM, including on the IRFA. The 
Commission's Final Regulatory Flexibility Analysis (FRFA) in this 
Memorandum Opinion and Order on Reconsideration conforms to the RFA, as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (SBREFA), Public Law 104-121, 110 Stat. 847 (1996), codified as 
Title II of the Contract With America Advancement Act of 1996 (CWAAA), 
5 U.S.C. 601 et seq.
i. Need for and Objectives of This Memorandum Opinion and Order on 
Reconsideration and the Rules Adopted Herein
    5. The Commission adopts in the Order on Reconsideration rules 
that: (1) Modify Sec. 64.1150(g) to clarify that interexchange carriers 
(IXCs) using LOAs must fully translate their LOAs into the same 
language(s) as their associated promotional materials, oral 
descriptions and instructions; (2) modify Sec. 64.1150(e)(4) to 
incorporate the terms ``interLATA and intraLATA,'' as well as 
``interstate and intrastate''; and (3) modify Sec. 64.1100(a) to 
clarify that IXCs must employ only one of the four verification options 
in Sec. 64.1100 to verify subscriber change orders generated by 
telemarketing. The objectives of the rules adopted in this Order on 
Reconsideration are to provide adequate safeguards to protect 
subscribers from unauthorized switching of their long distance carriers 
and to encourage full and fair competition among telecommunications 
carriers in the marketplace.
ii. Summary and Analysis of the Significant Issues Raised by the Public 
Comments in Response to the IRFA
    6. In the IRFA, the Commission found that the rules it proposed to 
adopt in this proceeding may have a significant impact on a substantial 
number of small businesses as defined by section 601(3) of the RFA. 
Specifically, small entities may feel some economic impact in 
additional printing costs due to the new requirement that IXCs must 
fully translate their LOAs into the same language(s) as their 
associated promotional materials, oral descriptions and instructions 
under Sec. 64.1150(g). The IRFA solicited comment on alternatives to 
proposed rules that would minimize the impact on small entities 
consistent with the objectives of this proceeding. Although the 
Commission has requested further comment on a number of these rules, 
the Commission received no comment(s) on the potential impact on small 
business entities with respect to the rules the Commission adopted in 
this Order on Reconsideration.
iii. Description and Estimates of the Number of Small Entities to Which 
the Rules Adopted in the Memorandum Order and Opinion on 
Reconsideration in CC Docket No. 94-129 Will Apply
    7. For the purposes of this analysis, the Commission examined the 
relevant definition of ``small entity'' or ``small business'' and 
applied this definition to identify those entities that may be affected 
by the rules adopted in this Order on Reconsideration. The RFA defines 
a ``small business'' to be the same as a ``small business concern'' 
under the Small Business Act, 15 U.S.C. 632, unless the Commission has 
developed one or more definitions that are appropriate to its 
activities. Under

[[Page 43479]]

the Small Business Act, a ``small business concern'' is one that: (1) 
Is independently owned and operated; (2) is not dominant in its field 
of operation; and (3) meets any additional criteria established by the 
Small Business Administration (SBA). Moreover, the SBA has defined a 
small business for Standard Industrial Classification (SIC) categories 
4812 (Radiotelephone Communications) and 4813 (Telephone 
Communications, Except Radiotelephone) to be small entities when they 
have fewer than 1,500 employees.
Telephone Companies (SIC 4813)
    8. Total Number of Telephone Companies Affected. The decisions and 
rules adopted by the Commission may have a significant effect on a 
substantial number of small telephone companies identified by the SBA. 
The United States Bureau of the Census (Census Bureau) reports that, at 
the end of 1992, there were 3,497 firms engaged in providing telephone 
service, as defined therein, for at least one year. This number 
contains a variety of different categories of carriers, including local 
exchange carriers (LECs), IXCs, competitive access providers (CAPs), 
cellular carriers, mobile service carriers, operator service providers 
(OSPs), pay telephone operators, PCS providers, covered SMR providers, 
and resellers. It seems certain that some of those 3,497 telephone 
service firms are not IXCs, or may not qualify as small entities 
because they are not ``independently owned and operated.'' For example, 
a PCS provider that is affiliated with an IXC having more than 1,500 
employees would not meet the definition of a small business. It seems 
reasonable to conclude, therefore, that fewer than 3,497 telephone 
service firms are small entity IXCs that may be affected by this Order 
on Reconsideration.
    9. Wireline Carriers and Service Providers. The SBA has developed a 
definition of small entities for telecommunications companies other 
than radiotelephone (wireless) companies (Telephone Communications, 
Except Radiotelephone). The Census Bureau reports that there were 2,321 
such telephone companies in operation for at least one year at the end 
of 1992. According to the SBA definition, a small business telephone 
company other than a radiotelephone company is one employing fewer than 
1,500 persons. Of the 2,321 non-radiotelephone companies listed by the 
Census Bureau, 2,295 companies (or, all but 26) were reported to have 
fewer than 1,000 employees. Thus, at least 2,295 non-radiotelephone 
companies might qualify as small incumbent LECs or small entities based 
on these employment statistics. However, because it seems certain that 
some of these carriers are not independently owned and operated, this 
figure necessarily overstates the actual number of non-radiotelephone 
companies that would qualify as ``small business concerns'' under the 
SBA definition. Moreover, although the rules adopted herein apply only 
to IXCs, this figure includes entities other than IXCs. Consequently, 
the Commission estimates using this methodology that there are fewer 
than 2,295 small entity telephone communications companies (other than 
radiotelephone companies) that may be affected by the proposed 
decisions and rules and seeks comment on this conclusion.
    10. Non-LEC wireline carriers. Next the Commission estimates the 
number of non-LEC wireline carriers, including IXCs, CAPs, OSPs, Pay 
Telephone Operators, and resellers that may be affected by these rules. 
Because neither the Commission nor the SBA has developed definitions 
for small entities specifically applicable to these wireline service 
types, the closest applicable definition under the SBA rules for all 
these service types is for telephone communications companies other 
than radiotelephone (wireless) companies. However, the TRS data 
provides an alternative source of information regarding the number of 
IXCs, CAPs, OSPs, Pay Telephone Operators, and resellers nationwide. 
According to the Commission's most recent data: 130 companies reported 
that they are engaged in the provision of interexchange services; 57 
companies reported that they are engaged in the provision of 
competitive access services; 25 companies reported that they are 
engaged in the provision of operator services; 271 companies reported 
that they are engaged in the provision of pay telephone services; and 
260 companies reported that they are engaged in the resale of telephone 
services and 30 reported being ``other'' toll carriers. Although it 
seems certain that some of these carriers are not independently owned 
and operated, or have more than 1,500 employees, the Commission is 
unable at this time to estimate with greater precision the number of 
IXCs, CAPs, OSPs, Pay Telephone Operators, and resellers that would 
qualify as small business concerns under SBA's definition. Firms filing 
TRS Worksheets are asked to select a single category that best 
describes their operation. As a result, some long distance carriers 
describe themselves as resellers, some as OSPs, some as ``other,'' and 
some simply as IXCs. Consequently, the Commission estimates that there 
are fewer than 130 small entity IXCs; 57 small entity CAPs; 25 small 
entity OSPs; 271 small entity pay telephone service providers; and 260 
small entity providers of resale telephone service; and 30 ``other'' 
toll carriers that might be affected by the rules proposed in this 
Order on Reconsideration.
    11. Radiotelephone (Wireless) Carriers. The SBA has developed a 
definition of small entities for Wireless (Radiotelephone) Carriers. 
The Census Bureau reports that there were 1,176 such companies in 
operation for at least one year at the end of 1992. According to the 
SBA definition, a small business radiotelephone company is one 
employing fewer than 1,500 persons. The Census Bureau also reported 
that 1,164 of those radiotelephone companies had fewer than 1,000 
employees. Thus, even if all of the remaining 12 companies had more 
than 1,500 employees, there would still be 1,164 radiotelephone 
companies that might qualify as small entities if they are 
independently owned and operated. Although it seems certain that some 
of these carriers are not independently owned and operated, the 
Commission is unable to estimate with greater precision the number of 
Radiotelephone Carriers and service providers that would qualify as 
small business concerns under SBA's definition. The Commission is also 
unable to estimate how many of these entities are IXCs. Consequently, 
the Comission estimates that there are fewer than 1,164 small entity 
radiotelephone companies that might be affected by the rules proposed 
in this Order on Reconsideration.
    12. Cellular and Mobile Service Carriers. In an effort to further 
refine its calculation of the number of radiotelephone companies 
affected by the rules adopted herein, the Commission considers the 
categories of radiotelephone carriers, Cellular Service Carriers and 
Mobile Service Carriers. Neither the Commission nor the SBA has 
developed a definition of small entities specifically applicable to 
Cellular Service Carriers and to Mobile Service Carriers. The closest 
applicable definition under SBA rules for both services is for 
telephone companies other than radiotelephone (wireless) companies. The 
most reliable source of information regarding the number of Cellular 
Service Carriers and Mobile Service Carriers nationwide of which the 
Commission is aware appears to be the data that it collects annually in 
connection with the TRS. According to the Commission's most recent 
data, 792

[[Page 43480]]

companies reported that they are engaged in the provision of cellular 
services and 138 companies reported that they are engaged in the 
provision of mobile services. Although it seems certain that some of 
these carriers are not independently owned and operated, or have more 
than 1,500 employees, the Commission is unable at this time to estimate 
with greater precision the number of Cellular Service Carriers and 
Mobile Service Carriers that would qualify as small business concerns 
under SBA's definition. The Commission is also unable to estimate how 
many of these entities are IXCs. Consequently, the Commission estimates 
that there are fewer than 792 small entity Cellular Service Carriers 
and fewer than 138 small entity Mobile Service Carriers that might be 
affected by the rules proposed in this Order on Reconsideration.
    13. Broadband PCS Licensees. In an effort to further refine our 
calculation of the number of radiotelephone companies affected by the 
rules adopted herein, the Commission considers the category of 
radiotelephone carriers, Broadband PCS Licensees. The broadband PCS 
spectrum is divided into six frequency blocks designated A through F. 
As set forth in 47 CFR 24.720(b), the Commission has defined ``small 
entity'' in the auctions for Blocks C and F as a firm that had average 
gross revenues of less than $40 million in the three previous calendar 
years. For Block F, an additional classification for ``very small 
business'' was added and is defined as an entity that, together with 
its affiliates, has average gross revenues of not more than $15 million 
for the preceding three calendar years. The Commission's definition of 
a ``small entity'' in the context of broadband PCS auctions has been 
approved by SBA. The Commission has auctioned broadband PCS licenses in 
Blocks A through F. The Commission does not have sufficient data to 
determine how many small businesses bid successfully for licenses in 
Blocks A and B. There were 183 winning bidders that qualified as small 
entities in the Blocks C, D, E, and F auctions. The Commission is 
unable to estimate how many of these entities are IXCs. Based on this 
information, the Commission concludes that the number of broadband PCS 
licensees in Blocks C through F that might be affected by the rules 
proposed in this Order on Reconsideration includes, at most, the 183 
winning bidders that qualified as small entities in the Blocks C 
through F broadband PCS auctions.
    14. SMR Licensees. Pursuant to 47 CFR 90.814(b)(1), the Commission 
has defined ``small entity'' in auctions for geographic area 800 MHz 
and 900 MHz SMR licenses as a firm that had average annual gross 
revenues of less than $15 million in the three previous calendar years. 
This definition of a ``small entity'' in the context of 800 MHz and 900 
MHz SMR has been approved by the SBA. The rules adopted in this Order 
on Reconsideration may apply to SMR providers in the 800 MHz and 900 
MHz bands that either hold geographic area licenses or have obtained 
extended implementation authorizations. The Commission does not know 
how many IXCs provide 800 MHz or 900 MHz geographic area SMR service 
pursuant to extended implementation authorizations, nor how many of 
these providers have annual revenues of less than $15 million. The 
Commission assumes, for purposes of this FRFA, that all of the extended 
implementation authorizations may be held by IXCs that are small 
entities, which may be affected by the decisions and rules adopted in 
this Order on Reconsideration.
    15. The Commission completed its auctions for geographic area 
licenses in the 900 MHz SMR band on April 15, 1996. There were 60 
winning bidders who qualified as small entities in the 900 MHz auction. 
The Commission is unable to estimate how many of these entities are 
IXCs. Based on this information, the Commission concludes that the 
number of geographic area SMR licensees that may be affected by the 
rules adopted in this Order on Reconsideration includes, at most, these 
60 small entities. No auctions have been held for 800 MHz geographic 
area SMR licenses. Therefore, no small entities currently hold these 
licenses. A total of 525 licenses will be awarded for the upper 200 
channels in the 800 MHz geographic area SMR auction. However, the 
Commission has not yet determined how many licenses will be awarded for 
the lower 230 channels in the 800 MHz geographic area SMR auction. 
There is no basis, moreover, on which to estimate how many small 
entities will win these licenses, or how many of these entities will be 
IXCs. Given that nearly all radiotelephone companies have fewer than 
1,000 employees and that no reliable estimate of the number of 
prospective 800 MHz licensees can be made, the Commission assumes, for 
purposes of this FRFA, that all of the licenses may be awarded to IXCs 
that are small entities which, thus, may be affected by the decisions 
in this Order on Reconsideration.
iv. Summary of Projected Reporting, Recordkeeping and Other Compliance 
Requirements
    16. The Commission, in this Order on Reconsideration, (1) directs 
carriers that use LOAs to fully translate their LOAs into the same 
language(s) as their associated promotional materials, oral 
descriptions and instructions; (2) modifies Sec. 64.1150(e)(4) of its 
rules to incorporate the terms ``interLATA'' and ``intraLATA,'' as well 
as ``interstate'' and ``intrastate''; and (3) clarifies that IXCs must 
employ only one of the four options in Sec. 64.1100 to verify 
subscriber change orders generated by telemarketing. The Commission has 
determined that compliance with these provisions may require carriers 
to modify their marketing and advertising materials.
v. Steps Taken To Minimize the Significant Economic Impact of This 
Memorandum Opinion and Order on Small Entities and Small Incumbent 
LECs, Including the Significant Alternatives Considered and Rejected
    17. After consideration of potential alternatives, the Commission 
determined that the requirement that carriers translate LOAs into the 
same language as their associated promotional materials or oral 
descriptions and instructions may have a significant impact on a 
substantial number of small businesses as defined by section 601(3) of 
the RFA. Specifically, small entities may feel some economic impact in 
additional printing costs due to the new requirement under 
Sec. 64.1150(g). Nevertheless, the overwhelming majority of commenters 
supported the Commission's adoption of this rule, without providing 
specific comment regarding the economic impact to small entities or 
alternatives to lessen the economic impact. Moreover, because the rules 
will not take effect for one hundred fifty (150) days, the Commission 
believes all IXCs, large and small, will have sufficient advance time 
to revise and print new LOAs, if necessary. By enacting this rule, the 
Commission is only requiring that IXCs using LOAs ensure that the 
language of their promotional material matches that which authorizes a 
change in subscriber service. The Commission believes that even if the 
economic impact is significant to some small entities, the benefit of 
protecting non-English speaking consumers from being mislead by 
language that they may not fully understand is consistent with the 
stated objectives, and thus justifies any increase in printing costs.

[[Page 43481]]

    18. The Commission determined that the rule incorporating the terms 
``interLATA and intraLATA'' as well as ``interstate and intrastate'' 
contained in this Order on Reconsideration will not impose any 
additional requirements on IXCs. These terms were incorporated only to 
remove possible confusion or uncertainty as to the scope of our rules 
as pertaining to all jurisdictions. Likewise, the rule clarifying that 
IXCs must employ only one verification option will not impose any 
additional requirements on IXCs. Therefore, adoption of these rules 
should have little or no economic impact on small entities. Because the 
Commission concludes that adoption of these rules will cause little or 
no economic impact on small entities, the Commission has identified no 
significant alternatives, nor were any offered by parties commenting on 
the IRFA.
vi. Report to Congress
    19. The Commission shall send a copy of this FRFA, along with this 
Memorandum Opinion and Order on Reconsideration, in a report to 
Congress pursuant to the Small Business Regulatory Enforcement Fairness 
Act of 1996, 5 U.S.C. 801(a)(1)(A). A copy of this FRFA will also be 
published in the Federal Register.

IV. Conclusion

    20. The Commission reaffirms, with minor modifications, its 
verification procedures adopted in the 1995 Report and Order. The 
Commission's stay of its 1995 Report and Order, insofar as it extends 
the PIC-change verification requirements set forth in Sec. 64.1100 of 
the Commission rules to consumer-initiated or in-bound telemarketing 
calls, remains in effect.

V. Ordering Clauses

    21. It is ordered that, pursuant to Sections 1, 4, 201-205, 215, 
218, 220 and 258 of the Communications Act of 1934, as amended, 47 
U.S.C. 151, 154, 201-205, 215, 218, 220, and 258, the Petitions for 
Reconsideration of Allnet Communication Services, Inc., AT&T 
Corporation, Frontier Communications International, Inc., MCI 
Telecommunications Corporation, National Association of Attorneys 
General, and Sprint Communications Company Are granted to the extent 
described herein and Are denied in all other respects.
    22. It is further ordered that the Petition for Clarification of 
the Telecommunications Resellers Association is granted to the extent 
described herein and is denied in all other respects.
    23. It is further ordered that 47 CFR Part 64 is amended as set 
forth below.
    24. It is further ordered that the policies, rules and requirements 
set forth below in this memorandum opinion and order on reconsideration 
are effective January 12, 1998 except for section 64.1150 which will 
become effective upon approval by the Office of Management and Budget. 
The Commission will publish a document at a later date announcing the 
effective date.

List of Subjects in 47 CFR Part 64

    Communications common carriers, Consumer protection, 
Telecommunications.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    47 CFR part 64 is amended as follows:
    1. The authority citation for part 64 continues to read as follows:

    Authority: Sec. 4, 48 Stat. 1066, as amended; 47 U.S.C. 154, 
unless otherwise noted. Interpret or apply secs. 201, 218, 226, 228, 
48 Stat. 1070, as amended, 1077; 47 U.S.C. 201, 218, 226, 228, 
unless otherwise noted.

    2. Section 64.1100(a) is revised to read as follows:


Sec. 64.1100  Verification of orders for long distance service 
generated by telemarketing.

* * * * *
    (a) The IXC has obtained the customer's written authorization in a 
form that meets the requirements of Sec. 64.1150;
* * * * *
    3. Section 64.1150(e)(4) is revised to read as follows:


Sec. 64.1150  Letter of agency form and content.

* * * * *
    (e) * * *
    (4) That the subscriber understands that only one interexchange 
carrier may be designated as the subscriber's interstate or interLATA 
primary interexchange carrier for any one telephone number. To the 
extent that a jurisdiction allows the selection of additional primary 
interexchange carriers (e.g., for intrastate, intraLATA or 
international calling), the letter of agency must contain separate 
statements regarding those choices. Any carrier designated as a primary 
interexchange carrier must be the carrier directly setting the rates 
for the subscriber. One interexchange carrier can be both a 
subscriber's interstate or interLATA primary interexchange carrier and 
a subscriber's intrastate or intraLATA primary interexchange carrier; 
and
* * * * *
    4. Section 64.1150(g) is revised to read as follows:


Sec. 64.1150  Letter of agency form and content.

* * * * *
    (g) If any portion of a letter of agency is translated into another 
language, then all portions of the letter of agency must be translated 
into that language. Every letter of agency must be translated into the 
same language as any promotional materials, oral descriptions or 
instructions provided with the letter of agency.

[FR Doc. 97-21527 Filed 8-13-97; 8:45 am]
BILLING CODE 6712-01-P