Telephone Operator Consumer Services Improvement Act of 1990
PL 101-435 (H.R.971), enacted 10/17/1990

104 STAT. 986 
PUBLIC LAW 101-435—OCT. 17, 1990 
Public Law 101-435 
101st Congress 
An Act 
Oct 17 1990 
'^° require the Federal Communications Commission to prescribe rules to protect 
' 
consumers from unfair practices in the provision of operator services, and for other 
[H.R. 971] 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
Telephone 
United States of America in Congress assembled. 
Operator 
Consumer 
SECTION 1. SHORT TITLE. 
Services 
Improvement 
This Act may be cited as the "Telephone Operator Consumer 
Act of 1990. 
Services Improvement Act of 1990''. 
47 u s e 609 note. 
47 u s e 226 note. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) the divestiture of AT&T and decisions allowing open entry 
for competitors in the telephone marketplace produced a vari-
ety of new services and many new providers of existing tele-
phone services; 
(2) the growth of competition in the telecommunications 
market makes it essential to ensure that safeguards are in place 
to assure fairness for consumers and service providers alike; 
(3) a variety of providers of operator services now compete to 
, 
win contracts to provide operator services to hotels, hospitals, 
airports, and other aggregators of telephone business from 
consumers; 
(4) the mere existence of a variety of service providers in the 
operator services marketplace is significant in making that 
market competitive only when consumers are able to make 
informed choices from among those service providers; 
(5) however, often consumers have no choices in selecting a 
provider of operator services, and often attempts by consumers 
to reach their preferred long distance carrier by using a tele-
phone billing card, credit card, or prearranged access code 
number are blocked; 
(6) a number of State regulatory authorities have taken action 
to protect consumers using intrastate operator services; 
(7) from January 1988 through February 1990, the Federal 
Communications Commission received over 4,000 complaints 
from consumers about operator services; 
(8) those consumers have complained that they are denied 
access to the interexchange carrier of their choice, that they are 
deceived about the identity of the company providing operator 
services for their calls and the rates being charged, that they 
lack information on what they can do to complain about unfair 
treatment by an operator service provider, and that they are, 
accordingly, being deprived of the free choice essential to the 
operation of a competitive market; 
(9) the Commission has testified that its actions have been 
insufficient to correct the problems in the operator services 
industry to date; and 
PUBLIC LAW 101-435—OCT. 17, 1990 
104 STAT. 987 
(10) a combination of industry self-regulation and government 
regulation is required to ensure that competitive operator serv-
ices are provided in a fair and reasonable manner. 
SEC. 3. AMENDMENT. 
Title II of the Communications Act of 1934 is amended by insert-
ing immediately after section 225 (47 U.S.C. 225) the following new 
section: 
"SEC. 226. TELEPHONE OPERATOR SERVICES. 
47 USC 226. 
"(a) DEFINITIONS.—As used in this section— 
"(1) The term 'access code' means a sequence of numbers that, 
when dialed, connect the caller to the provider of operator 
services associated with that sequence. 
"(2) The term 'aggregator' means any person that, in the 
ordinary course of its operations, makes telephones available to 
the public or to transient users of its premises, for interstate 
telephone calls using a provider of operator services. 
"(3) The term 'call splashing' means the transfer of a tele-
phone call from one provider of operator services to another 
such provider in such a manner that the subsequent provider is 
unable or unwilling to determine the location of the origination 
of the call and, because of such inability or unwillingness, is 
prevented from billing the call on the basis of such location. 
"(4) The term 'consumer' means a person initiating any inter-
state telephone call using operator services. 
"(5) The term 'equsd access' has the meaning given that term 
in Appendix B of the Modification of Final Judgment entered 
August 24, 1982, in United States v. Western Electric, Civil 
Action No. 82-0192 (United States District Court, District of 
Columbia), as amended by the Court in its orders issued prior to 
the enactment of this section. 
"(6) The term 'equal access code' means an access code that 
allows the public to obtain an equal access connection to the 
carrier Eissociated with that code. 
"(7) The term 'operator services' means any interstate tele-
communications service initiated from an aggregator location 
that includes, as a component, any automatic or live assistance 
to a consumer to arrange for billing or completion, or both, of an 
interstate telephone call through a method other than— 
"(A) automatic completion with billing to the telephone 
from which the call originated; or 
"(B) completion through an access code used by the 
consumer, with billing to an account previously established 
with the carrier by the consumer. 
"(8) The term 'presubscribed provider of operator services' 
means the interstate provider of operator services to which the 
consumer is connected when the consumer places a call using a 
provider of operator services without dialing an access code. 
"(9) The term 'provider of operator services' means any 
common carrier that provides operator services or any other 
person determined by the Commission to be providing operator 
services. 
"(h) REQUIREMENTS FOR PROVIDERS OF OPERATOR SERVICES.— 
"(1) IN GENERAL.—Beginning not later than 30 days after the 
date of enactment of this section, each provider of operator 
services shall, at a minimum— 
104 STAT. 988 
PUBLIC LAW 101-435—OCT. 17, 1990 
"(A) identify itself, audibly and distinctly, to the 
consumer at the beginning of each telephone call and 
before the consumer incurs any charge for the call; 
"(B) permit the consumer to terminate the telephone call 
at no charge before the call is connected; 
"(C) disclose immediately to the consumer, upon request 
and at no charge to the consumer— 
"(i) a quote of its rates or charges for the call; 
"(ii) the methods by which such rates or charges will 
be collected; and 
"(iii) the methods by which complaints concerning 
such rates, charges, or collection practices will be 
resolved; 
"(D) ensure, by contract or tariff, that each aggregator for 
which such provider is the presubscribed provider of opera-
tor services is in compliance with the requirements of 
subsection (c) and, if applicable, subsection (e)(1); 
"(E) withhold payment (on a location-by-location basis) of 
any compensation, including commissions, to aggregators if 
such provider reasonably believes that the aggregator (i) is 
blocking access by means of "950" or "800" numbers to 
interstate common carriers in violation of subsection 
(c)(1)(B) or (ii) is blocking access to equal access codes in 
violation of rules the Commission may prescribe under 
subsection (e)(1); 
"(F) not bill for unanswered telephone calls in areas 
where equal access is available; 
"(G) not knowingly bill for unanswered telephone calls 
where equal access is not available; 
"(H) not engage in call splashing, unless the consumer 
requests to be transferred to another provider of operator 
services, the consumer is informed prior to incurring any 
charges that the rates for the call may not reflect the rates 
from the actual originating location of the call, and the 
consumer then consents to be transferred; 
"(I) except as provided in subparagraph (H), not bill for a 
call that does not reflect the location of the origination of 
the call; and 
"(J) not bill an interexchange telephone call to a billing 
card number which— 
"(i) is issued by another provider of operator services, 
Eind 
"(ii) permits the identification of the other provider, 
unless the call is billed at a rate not greater than the other 
provider's rate for the call, the consumer requests a special 
service that is not available under tariff from the other 
provider, or the consumer expressly consents to a rate 
greater than the other provider's rate. 
"(2) ADDITIONAL REQUIREMENTS FOR FIRST 3 YEARS.—In addi-
tion to meeting the requirements of paragraph (1), during the 3-
year period beginning on the date that is 30 days after the date 
of enactment of this section, each presubscribed provider of 
operator services shall identify itself audibly and distinctly to 
the consumer, not only as required in paragraph (1)(A), but also 
for a second time before connecting the call and before the 
consumer incurs any charge. 
"(c) REQUIREMENTS FOR AGGREGATORS.— 
PUBLIC LAW 101-435—OCT. 17, 1990 
104 STAT. 989 
"(1) IN GENERAL.—Each aggregator, beginning not later than 
30 days after the date of enactment of this section, shall— 
"(A) post on or near the telephone instrument, in plain 
view of consumers— 
"(i) the name, address, and toll-free telephone 
number of the provider of operator services; 
"(ii) a written disclosure that the rates for all opera-
tor-assisted calls are available on request, and that 
consumers have a right to obtain access to the inter-
state common carrier of their choice and may contact 
their preferred interstate common carriers for informa-
tion on accessing that carrier's service using that tele-
phone; and 
"(iii) the name and address of the enforcement divi-
sion of the Common Carrier Bureau of the Commission, 
to which the consumer may direct complaints regard-
ing operator services; 
"(B) ensure that each of its telephones presubscribed to a 
provider of operator services allows the consumer to use 
"800" and "950" access code numbers to obtain access to the 
provider of operator services desired by the consumer; and 
"(C) ensure that no charge by the Eiggregator to the 
consumer for using an "800" or "950" access code number, 
or any other access code number, is greater than the 
amount the aggregator charges for calls placed using the 
presubscribed provider of operator services. 
"(2) EFFECT OF STATE LAW OR REGULATION.—The requirements 
of paragraph (1)(A) shall not apply to an aggregator in any case 
in which State law or State regulation requires the aggregator 
to take actions that are substantially the same as those required 
in paragraph (1)(A). 
"(d) GENERAL RULEMAKING REQUIRED.— 
"(1) RULEMAKING PROCEEDING.—The Commission shall con-
duct a rulemaking proceeding pursuant to this title to prescribe 
regulations to— 
"(A) protect consumers from unfair and deceptive prac- 
, 
tices relating to their use of operator services to place 
interstate telephone calls; and 
"(B) ensure that consumers have the opportunity to make 
informed choices in making such calls. 
"(2) DEADLINES.—The Commission shall initiate the proceed-
ing required under paragraph (1) within 60 days after the date 
of enactment of this section and shall prescribe regulations 
pursuant to the proceeding not later than 210 days after such 
date of enactment. Such regulations shall take effect not later 
than 45 days after the date the regulations are prescribed. 
"(3) CONTENTS OF REGULATIONS.—The regulations prescribed 
under this section shall— 
"(A) contain provisions to implement each of the require-
ments of this section, other than the requirements estab-
lished by the rulemaking under subsection (e) on access and 
compensation; and 
"(B) contain such other provisions as the Commission 
determines necessary to carry out this section and the 
purposes and policies of this section. 
104 STAT. 990 
PUBLIC LAW 101-435—OCT. 17, 1990 
"(4) ADDITIONAL REQUIREMENTS TO BE IMPLEMENTED BY REGU-
LATIONS.—The regulations prescribed under this section shall, 
at a minimum— 
"(A) establish minimum standards for providers of opera-
tor services to use in the routing and handling of emer-
gency telephone calls; and 
Public 
"(B) establish a policy for requiring providers of operator 
information. 
services to make public information about recent changes 
in operator services and choices available to consumers in 
that market. 
"(e) SEPARATE RULEMAKING ON ACCESS AND COMPENSATION.— 
"(1) ACCESS.—The Commission, within 9 months after the date 
of enactment of this section, shall require— 
"(A) that each aggregator ensure within a reasonable 
time that each of its telephones presubscribed to a provider 
of operator services allows the consumer to obtain access to 
the provider of operator services desired by the consumer 
through the use of an equal access code; or 
"(B) that all providers of operator services, within a 
reasonable time, make available to their customers a "950" 
or "800" access code number for use in making operator 
services calls from anjrwhere in the United States; or 
"(C) that the requirements described under both subpara-
graphs (A) and (B) apply. 
"(2) COMPENSATION.—The Commission shall consider the need 
to prescribe compensation (other than advance payment by 
consumers) for owners of competitive public pay telephones for 
calls routed to providers of operator services that are other than 
the presubscribed provider of operator services for such tele-
phones. Within 9 months after the date of enactment of this 
section, the Commission shall reach a final decision on whether 
to prescribe such compensation. 
"(f) TECHNOLOGICAL CAPABILITY OF EQUIPMENT.—Any equipment 
and software manufactured or imported more than 18 months after 
the date of enactment of this section and installed by any aggregator 
shall be technologically capable of providing consumers with access 
* 
to interstate providers of operator services through the use of equal 
access codes. 
"(g) FRAUD.—In any proceeding to carry out the provisions of this 
section, the Commission shall require such actions or measures as 
are necessary to ensure that aggregators are not exposed to undue 
risk of fraud. 
"(h) DETERMINATIONS OF RATE COMPLIANCE.— 
"(1) FILING OF INFORMATIONAL TARIFF.— 
"(A) IN GENERAL.—Each provider of operator services 
shall file, within 30 days after the date of enactment of this 
section, and shall maintain, update regularly, and keep 
open for public inspection, an informational tariff specify-
ing rates, terms, and conditions, and including commis-
sions, surcharges, any fees which are collected from 
consumers, and reasonable estimates of the amount of traf-
fic priced at each rate, with respect to calls for which 
operator services are provided. Any changes in such rates, 
terms, or conditions shall be filed no later than the first day 
on which the changed rates, terms, or conditions are in 
effect. 
PUBLIC LAW 101-435—OCT. 17, 1990 
104 STAT. 991 
"(B) WAIVER AUTHORITY.—The Commission may, after 4 
years following the date of enactment of this section, waive 
the requirements of this paragraph only if^ 
"(i) the findings and conclusions of the Commission 
in the final report issued under paragraph (3)(B)(iii) 
state that the regulatory objectives specified in subsec-
tion (d)(1) (A) and (B) have been achieved; and 
"(ii) the Commission determines that such waiver 
will not adversely affect the continued achievement of 
such regulatory objectives. 
"(2) REVIEW OF INFORMATIONAL TARIFFS.—If the rates and 
charges filed by any provider of operator services under para-
graph (1) appear upon review by the Commission to be unjust or 
unreasonable, the Commission may require such provider of 
operator services to do either or both of the following: 
"(A) demonstrate that its rates and charges are just and 
reasonable, and 
"(B) announce that its rates are available on request at 
the beginning of each call. 
"(3) PROCEEDING REQUIRED.— 
"(A) IN GENERAL.—Within 60 days after the date of enact-
ment of this section, the Commission shall initiate a 
proceeding to determine whether the regulatory objectives 
specified in subsection (d)(1) (A) and (B) are being achieved. 
The proceeding shall— 
"(i) monitor operator service rates; 
"(ii) determine the extent to which offerings made by 
providers of operator services are improvements, in 
terms of service quality, price, innovation, and other 
factors, over those available before the entry of new 
providers of operator services into the market; 
"(iii) report on (in the aggregate and by individual Reports, 
provider) operator service rates, incidence of service 
complaints, and service offerings; 
"(iv) consider the effect that commissions and sur-
charges, billing and validation costs, and other costs of 
doing business have on the overall rates charged to 
consumers; and 
"(v) monitor compliance with the provisions of this 
section, including the periodic placement of telephone 
calls from aggregator locations. 
"(B) REPORTS.—(i) The Commission shall, during the 
pendency of such proceeding and not later than 5 months 
after its commencement, provide the Congress with an 
interim report on the Commission's activities and progress 
to date. 
"(ii) Not later than 11 months after the commencement of 
such proceeding, the Commission shall report to the Con-
gress on its interim findings as a result of the proceeding, 
"(iii) Not later than 23 months after the commencement 
of such proceeding, the Commission shall submit a final 
report to the Congress on its findings and conclusions. 
"(4) IMPLEMENTING REGULATIONS.— 
"(A) IN GENERAL.—Unless the Commission makes the 
determination described in subparagraph (B), the Commis-
39-194 O - 91 - 33 : QL 3 Part 1 
104 STAT. 992 
PUBLIC LAW 101-435—OCT. 17, 1990 
sion shall, within 180 days after submission of the report 
required under paragraph (3)(B)(iii), complete a rulemaking 
proceeding pursuant to this title to establish regulations for 
implementing the requirements of this title (and para-
graphs (1) and (2) of this subsection) that rates and charges 
for operator services be just and reasonable. Such regula-
tions shall include limitations on the amount of commis-
sions or any other compensation given to aggregators by 
providers of operator service. 
"(B) LIMITATION.—The requirement of subparagraph (A) 
shall not apply if, on the basis of the proceeding under 
paragraph (3XA), the Commission makes (and includes in 
the report required by paragraph (3XBXiii)) a factual deter-
mination that market forces are securing rates and charges 
that are just and reasonable, as evidenced by rate levels, 
costs, complaints, service quality, and other relevant fac-
tors. 
"(i) STATUTORY CONSTRUCTION.—Nothing in this section shall be 
construed to alter the obligations, powers, or duties of common 
carriers or the Commission under the other sections of this Act.". 
Approved October 17, 1990. 
LEGISLATIVE HISTORY—H.R. 971 (S. 1660): 
HOUSE REPORTS: No. 101-213 (Comm. on Energy and Commerce). 
SENATE REPORTS: No. 101-439 accompanying S. 1660 (Comm. on Commerce, 
Science, and Transportation). 
CONGRESSIONAL RECORD: 
Vol. 135 (1989): Sept. 25, considered and passed House. 
Vol. 136 (1990): Oct. 1, considered and passed Senate, amended, in lieu of 
S. 1660.