DA 03-1744 Federal Communications Commission 
Before the 
Federal Communications Commission 
In the Matter of 
Business Savings Plan d/b/a 
Universal Broadband Communications, Inc. 
IC No. 02-S77206 
02-S77210 
02-S80666 
02-S81218 
03-S83161 
Washington, D.C. 20554 
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) 
) 
) 
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Complaints Regarding ) 
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Unauthorized Change of 
Subscriber’s Telecommunications Carrier 
1 See Appendix A. 
2 
ORDER 
Adopted: May 19, 2002 Released: May 21, 2002 
By the Acting Deputy Chief, Policy Division, Consumer & Governmental Affairs Bureau: 
1. In this Order, we consider the complaints1 alleging that Business Savings Plan 
d/b/a Universal Broadband Communications, Inc. (UBC) changed Complainants’ 
telecommunications service providers without obtaining authorization and verification from 
Complainants in violation of the Commission’s rules.2 We conclude that UBC’s actions did 
result in an unauthorized change in Complainants’ telecommunications service providers and we 
grant Complainants’ complaints. 
2. In December 1998, the Commission released the Section 258 Order in which it 
adopted rules to implement Section 258 of the Communications Act of 1934 (Act), as amended 
by the Telecommunications Act of 1996 (1996 Act).3 Section 258 prohibits the practice of 
See 47 C.F.R. §§ 64.1100 – 64.1190. 
3 47 U.S.C. § 258(a); Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 
(1996); Implementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act of 
1996; Policies and Rules Concerning Unauthorized Changes of Consumers’ Long Distance Carriers, CC Docket 
No. 94-129, Second Report and Order and Further Notice of Proposed Rule Making, 14 FCC Rcd 1508 (1998) 
(Section 258 Order), stayed in part, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. May 18, 1999); First Order 
on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. June 
27, 2000); Third Report and Order and Second Order on Reconsideration, 15 FCC Rcd 15996 (2000), Errata, DA 
No. 00-2163 (rel. Sept. 25, 2000), Erratum, DA No. 00-2192 (rel. Oct. 4, 2000), Order, FCC 01-67 (rel. Feb. 22, 
2001); reconsideration pending. Prior to the adoption of Section 258, the Commission had taken various steps to 
address the slamming problem. See, e.g., Policies and Rules Concerning Unauthorized Changes of Consumers' 
Long Distance Carriers, CC Docket No. 94-129, Report and Order, 10 FCC Rcd 9560 (1995), stayed in part, 11 
FCC Rcd 856 (1995); Policies and Rules Concerning Changing Long Distance Carriers, CC Docket No. 91-64, 7 
FCC Rcd 1038 (1992), reconsideration denied, 8 FCC Rcd 3215 (1993); Investigation of Access and Divestiture 
(continued….) 
DA 03-1744 Federal Communications Commission 
“slamming,” the submission or execution of an unauthorized change in a subscriber’s selection 
of a provider of telephone exchange service or telephone toll service.4 In the Section 258 Order, 
the Commission adopted aggressive new rules designed to take the profit out of slamming, 
broadened the scope of the slamming rules to encompass all carriers, and modified its existing 
requirements for the authorization and verification of preferred carrier changes. The rules 
require, among other things, that a carrier receive individual subscriber consent before a carrier 
change may occur.5 Pursuant to Section 258, carriers are absolutely barred from changing a 
customer's preferred local or long distance carrier without first complying with one of the 
Commission's verification procedures.6 Specifically, a carrier must: (1) obtain the subscriber's 
written or electronically signed authorization in a format that meets the requirements of Section 
64.1130 authorization; (2) obtain confirmation from the subscriber via a toll-free number 
provided exclusively for the purpose of confirming orders electronically; or (3) utilize an 
independent third party to verify the subscriber's order.7 
3. The Commission also has adopted liability rules. These rules require the carrier 
to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the 
subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of 
liability for charges imposed by the unauthorized carrier for service provided during the first 30 
days after the unauthorized change.8 Where the subscriber has paid charges to the unauthorized 
carrier, the Commission’s rules require that the unauthorized carrier pay 150% of those charges 
to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50% 
of all charges paid by the subscriber to the unauthorized carrier.9 Carriers should note that our 
actions in this Order do not preclude the Commission from taking action, if warranted, pursuant 
to section 503 of the Act.10 
4. We received Complainants’ complaints alleging that Complainants’ 
telecommunications service providers had been changed from their authorized carriers to UBC 
Related Tariffs, CC Docket No. 83-1145, Phase I, 101 F.C.C.2d 911, 101 F.C.C.2d 935, reconsideration denied, 
102 F.C.C.2d 503 (1985). 
47 U.S.C. § 258(a). 4 
See 47 C.F.R. § 64.1120(b). 5 
47 U.S.C. § 258(a). 6 
See 47 C.F.R. § 64.1120(c). Section 64.1130 details the requirements for letter of agency form 7 
and content for written or electronically signed authorizations. 47 C.F.R. § 64.1130. 
8 See 47 C.F.R. §§ 64.1140, 64.1160. Any charges imposed by the unauthorized carrier on the 
subscriber for service provided after this 30-day period shall be paid by the subscriber to the authorized carrier at 
the rates the subscriber was paying to the authorized carrier at the time of the unauthorized change. Id. 
9 See 47 C.F.R. §§ 64.1140, 64.1170. 
10 See 47 U.S.C. § 503. 
2 without Complainants’ authorization. Pursuant to Sections 1.719 and 64.1150 of our rules,11 we 
notified UBC of the complaints and UBC responded.12 UBC states that Complainants’ telephone 
numbers were purchased from another company and therefore, they did not use a letter of 
agency. Our rules allow a telecommunications provider to acquire all or part of another carrier’s 
subscriber base without obtaining each subscriber’s authorization and verification provided that 
the acquiring carrier comply with our streamlined procedures.13 To comply with these 
procedures, the acquiring carrier must file with the Commission’s Office of Secretary, no later 
than 30 days before the planned transfer, a letter notification in CC Docket 00-257, including all 
the requirements listed in Section 64.1120 (e)(1) of our rules.14 UBC, however, did not file this 
letter notification with the Commission as required by our rules.15 We find that UBC has failed 
to produce clear and convincing evidence that Complainants authorized a carrier change.16 
Therefore, we find that UBC’s actions resulted in an unauthorized change in Complainants’ 
telecommunications service providers and we discuss UBC’s liability below.17 
5. Pursuant to Section 64.1170(b) our rules, UBC must forward to the relevant 
authorized carriers an amount equal to 150% of all charges paid by the relevant subscriber to 
UBC.18 UBC must forward to the relevant authorized carriers the amounts, along with copies of 
any telephone bills issued from UBC to the Complainants.19 Within ten days of receipt of this 
amount, the relevant authorized carriers shall provide a refund or credit to the relevant 
Complainants in the amount of 50% of all charges paid by the relevant Complainants to UBC. 
Complainants have the option of asking the authorized carriers to re-rate UBC’s charges based 
on the authorized carrier’s rates and, on behalf of Complainants, seek from UBC, any re-rated 
amount exceeding 50% of all charges paid by Complainants to UBC. The authorized carriers 
must also send a notice to the Commission, referencing this Order, stating that is has given a 
refund or credit to the relevant Complainants.20 If the authorized carriers have not received the 
11 
of the Act); 47 C.F.R. § 64.1150 (procedures for resolution of unauthorized changes in preferred carrier). 
12 
13 
14 
15 
16 
17 If Complainant is unsatisfied with See 47 C.F.R. § 1.719the resolution of this complaint, 
Complainant may file a formal complaint with the Commission pursuant to Section 1.721 of the Commission’s 
rules, 47 C.F.R. § 1.721. Such filing will be deemed to relate back to the filing date of Complainant’s informal 
complaint so long as the formal complaint is filed within 45 days from the date this order is mailed or delivered 
electronically to Complainant. See 47 C.F.R. § 1.719. 
18 
19 
20 
DA 03-1744 Federal Communications Commission 
47 C.F.R. § 1.719 (Commission procedure for informal complaints filed pursuant to Section 258 
See Appendix A. 
See 47 C.F.R. §§ 64.1120(e). 
See 64.1120 (e)(1). 
See 47 C.F.R. §§ 64.1150(d). 
See 47 C.F.R. § 64.1150(d). 
47 C.F.R. § 64.1170(b). 
Id. 
See 47 C.F.R. § 64.1170(c). 
3
DA 03-1744 Federal Communications Commission 
reimbursement required from UBC within 45 days of the release of this Order, the authorized 
carriers must notify the Commission and Complainants accordingly. The authorized carriers also 
must notify the Complainants of his or her right to pursue a claim against UBC for a refund of all 
charges paid to UBC.21 
6. Accordingly, IT IS ORDERED that, pursuant to Section 258 of the 
Communications Act of 1934, as amended, 47 U.S.C. § 258, and Sections 0.141, 0.361 and 
1.719 of the Commission’s rules, 47 C.F.R. §§ 0.141, 0.361, 1.719, the complaints filed by 
Complainants22 against UBC ARE GRANTED. 
7. IT IS FURTHER ORDERED that, pursuant to Section 64.1170(d) of the 
Commission’s rules, 47 C.F.R. § 64.1170(d), Complainants are entitled to absolution for the 
charges incurred during the first thirty days after the unauthorized change occurred to each 
Complainant and neither the authorized carrier nor UBC may pursue any collection against 
Complainants for those charges. 
8. IT IS FURTHER ORDERED that this Order is effective upon release. 
FEDERAL COMMUNICATIONS COMMISSION 
Nancy A. Stevenson, Acting Deputy Chief 
Policy Division 
Consumer & Governmental Affairs Bureau 
21 
See 47 C.F.R. § 64.1170(e). 
22 See Appendix A. 
4 INFORMAL 
COMPLAINT 
NUMBER 
02-S77206 
02-S77210 
02-S80666 
02-S81218 
03-S83161 
Federal Communications Commission 
APPENDIX A 
DATE OF 
COMPLAINT 
DATE OF 
CARRIER 
RESPONSE 
September 19, 2002 
September 19, 2002 
November 7, 2002 
November 26, 2002 
April 30, 2003 
June 18, 2002 
June 27, 2002 
September 17, 2002 
October 1, 2002 
March 21, 2003 
5 
DA 03-1744 
NAME OF 
AUTHORIZED 
CARRIER 
AT&T Corp 
Covista 
AT&T Corp. 
AT&T Corp. 
WorldCom