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 NEWS  News  media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT: 
 April  5,  2001  Michael  Balmoris  202-  418-  0253 
 Email:  mbalmori@  fcc.  gov 


 FEDERAL  COMMUNICATIONS  COMMISSION  STRENGTHENS 
 PAYPHONE  COMPETITION 


 New  Rules  Ensure  Competing  Payphone  Providers  Are  Compensated  for 
 Coinless  Calls 


 Washington,  D.  C.  –  Today,  the  Federal  Communications  Commission  (FCC) 
 released  an  Order  that  modifies  its  payphone  per-  call  compensation  rules  to  ensure  that 
 payphone  service  providers  (PSPs)  are  fairly  compensated  for  coinless  calls  made  from 
 payphones.  Currently,  payphone  service  providers  are  facing  problems  collecting  the 
 per-  call  compensation  they  are  due  for  coinless  calls  that  involve  multiple  carriers.  The 
 shortfalls  in  compensation  occur  when  phone  calls  are  routed  from  a  long  distance  carrier 
 to  a  switch-  based  reseller  carrier.  An  estimated  20%  -  50%  of  revenue  for  calls  routed 
 through  switch-  based  resellers  goes  uncollected,  according  to  the  American  Public 
 Communications  Council  (APCC). 


 The  Commission’s  Second  Order  on  Reconsideration  released  today  requires  the 
 first  underlying  facilities-  based  long  distance  carrier  to  compensate  payphone  service 
 providers  for  completed  coinless  payphone  calls.  Additionally,  the  first  underlying 
 facilities-  based  long  distance  carrier  is  required  to: 


 1.  compensate  the  payphone  provider  at  a  mutually  agreeable  rate; 
 2.  track  or  arrange  for  tracking  of  the  payphone  call  to  determine  whether  it  is 
 completed  and  therefore  compensable;  and, 
 3.  provide  to  the  payphone  provider  a  statement  of  the  number  of  coinless 
 payphone  calls  it  receives  from  each  of  that  provider’s  payphones. 


 The  new  rules  also  require  each  reseller  to  reimburse  the  first  underlying 
 facilities-  based  carrier  for  the  amount  paid  by  that  carrier  to  the  payphone  service 
 provider  and  for  that  carrier’s  cost  of  tracking  the  call  and  providing  such  information  to 
 the  payphone  service  provider. 


 -FCC-Docket 
 No.:  CC  96-  128 
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 Action  by  the  Commission  March  28,  2001  by  Second  Order  on  Reconsideration 
 (FCC  01-  109).  Chairman  Powell  and  Commissioners  Ness,  Furchtgott-  Roth,  and 
 Tristani. 


 Common  Carrier  Bureau  Staff  Contact: 
 Marty  Schwimmer,  Network  Services  Division,  202-  418-  2320 


 News  about  the  Federal  Communications  Commission  can  also  be  found 
 on  the  Commission’s  web  site  www.  fcc.  gov. 
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