On August 3, 2001, the Federal Communications Commission (FCC) released its decision not to automatically grant AT&T's application to discontinue interstate sent-paid coin service. According to AT&T, it seeks to retire network-controlled coin calling from "dumb" coin phones that require Feature Group C-based network signaling to: (a) determine the rates for a dialed call; (b) track the deposit of coins into the phone; (c) time the call to require deposit of additional coins for additional periods; (d) terminate calls when the usage the customer has paid for has expired; and (e) return coins when appropriate. The Telecommunications Research and Action Center (TRAC) applauds the Commission's decision to require AT&T to submit a transition plan addressing the concerns of consumers and other parties.

In its Public Notice denying AT&T's application, the FCC stated that the Comments (by TRAC and others) raised significant concerns and that the public interest would not be served by the automatic grant of AT&T's application. Specifically, the FCC expressed concern over the significant number of customers adversely affected by the requested discontinuance. Also, the FCC cited AT&T's failure to provide required notice to customers and AT&T's failure to "demonstrate any specific marketing and/or educational efforts to assist affected customers."

The FCC's decision comes after TRAC assisted the Commission in convening a meeting with interested parties to address ways to resolve consumer concerns. On July 31, 2001, TRAC, representatives from AT&T, and other commenting parties met with the FCC's Network Services Division staff to exchange views on AT&T's application. TRAC raised its concerns about AT&T's application and expressed its support for a discontinuance transition plan.

"TRAC views the FCC's decision not to automatically grant the requested discontinuance as a victory for consumers," said Dirck A. Hargraves, Counsel to TRAC. "TRAC is cautiously optimistic about AT&T's pledge to develop a transition plan that would ease the burden of discontinuance on consumers."

The FCC has requested that AT&T submit a transition plan addressing concerns raised by TRAC and others no later than August 10, 2001. Parties wishing to comment on AT&T's plan may then file Comments by August 24, 2001.

Copies of the Public Notice can be found at the August 6th Daily Digest at the FCC website: www.fcc.gov.

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MEDIA CONTACT:

John Breyault, TRAC, johnb@trac.org, 202-263-2943

ABOUT TRAC:

The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.