FCC Facilitates Agreement Between MCI and Bell Atlantic on Billing Credits

Strategic Insights -

The Federal Communications Commission (FCC) has facilitated an agreement between MCI Telecommunications Corp. and Bell Atlantic Corp. to provide billing credits to customers who were overcharged due to technical problems with MCI's long-distance service. The issue affected consumers who used the "10321" dial-around service of MCI's Telecom *USA, Inc. subsidiary, resulting in incorrect billing charges. The agreement marks a collaborative effort between the two companies to resolve the issue and provide refunds to affected customers.

Key Takeaways:

  • The FCC facilitated an agreement between MCI Telecommunications Corp. and Bell Atlantic Corp. to provide billing credits to customers who were overcharged due to technical problems with MCI's long-distance service.
  • The issue affected 60 consumers who wrote to the FCC complaining about the problem over the past several months.
  • The agreement requires Bell Atlantic to identify affected customers and provide refunds, regardless of whether they reported a billing problem.
  • The problem stemmed from a Bell Atlantic network conversion that impacted some of its end offices' ability to handle 10-321 calls, resulting in incorrect billing charges.
  • MCI estimates that far less than 1% of all Telecom *USA calls were affected.
  • Bell Atlantic provided software to MCI to distinguish different kinds of calls, but the software did not work in about 50 of its 2,300 central offices.
  • The issue was limited to calls originating in the Boston area and Virginia.
  • MCI is paying for the billing credits, while Bell Atlantic is incurring the cost of providing software and tapes to MCI.

Statistics:

  • 60 letters from consumers complaining about the problem over the past several months.
  • Far less than 1% of all Telecom *USA calls were affected.
  • About 50 of Bell Atlantic's 2,300 central offices were impacted by the technical issues.
  • The issue affected calls originating in the Boston area and Virginia.
  • MCI is paying for the billing credits, with Bell Atlantic incurring the cost of providing software and tapes.

Sources:

  • [Source 1] FCC announcement, as reported in a March 21, 1994, article on Telecommunications Online.
  • [Source 2] Interview with MCI spokesperson, as reported in a March 21, 1994, article on Telecommunications Online.
  • [Source 3] Interview with Bell Atlantic spokesperson, as reported in a March 21, 1994, article on Telecommunications Online.