Recommendation

DATE:	March 27, 2008
TO:	Office of Commission Clerk (Cole)
FROM:	Division of Competitive Markets & Enforcement (M. Watts) Office of the General Counsel (McKay)
RE:	Docket No. 080137-TP – Joint request for waiver of the carrier selection requirements of Rule 25-4.118, F.A.C., in transfer of long distance customers from STARTEC Global Operating Company (TK051) to Americatel Corporation d/b/a 1010 123 Americatel d/b/a 10-15-688 AMETEX d/b/a 1 800 3030 123 Americatel Collect (TJ049); and request for cancellation of IXC Registration No. TK051, effective on consummation of transaction, on or about March 31, 2008.
AGENDA:	04/08/08 – Regular Agenda – Proposed Agency Action – Interested Persons May Participate
COMMISSIONERS ASSIGNED:		All Commissioners
PREHEARING OFFICER:		Administrative
CRITICAL DATES:		None
SPECIAL INSTRUCTIONS:		None
FILE NAME AND LOCATION:		S:\PSC\CMP\WP\080137.RCM.DOC

Case Background

On March 6, 2008, Americatel Corporation d/b/a 1010 123 Americatel d/b/a 10-15-688 AMETEX d/b/a 1 800 3030 123 Americatel Collect (Americatel) and STARTEC Global Operating Company (STARTEC), both intrastate interexchange companies (IXCs), submitted a joint request for a waiver of the carrier selection requirements of Rule 25-4.118, Florida Administrative Code. The waiver allows STARTEC to transfer its customer accounts to Americatel without obtaining each customer’s authorization. Approximately 6,263 customers are being transferred. STARTEC will not retain its IXC registration with the Commission.

This waiver is being sought to provide the Commission notice of the transfer of assets, for the treatment of customers in a consumer-friendly manner and to allow for a transition to occur in a smooth process protecting both the consumers and the company. Without this waiver, Americatel would be required to obtain signed letters of agency (LOAs) or third party verifications (TPVs) from each customer being transferred. With the waiver, Americatel can protect itself from possible complaints of unauthorized carrier changes. This waiver is also beneficial to the customers as they will not be subject to a loss of service on the date of transfer. Thus, this recommendation addresses the request for waiver of Rule 25-4.118, Florida Administrative Code, for intrastate interexchange telecommunications services.

In the petition, STARTEC also requested that its IXC registration be canceled upon completion of the transaction. This recommendation addresses only the request for waiver of the carrier selection requirements of Rule 25-4.118, Florida Administrative Code, for the transfer of customers from STARTEC to Americatel. The IXC registration cancellation will be processed in accordance with the requirements of Section 2.07.C.5.i., Administrative Procedures Manual.

The Commission is vested with jurisdiction in this matter pursuant to Sections 364.02 and 364.603, Florida Statutes. Accordingly, staff believes the following recommendations are appropriate.

Discussion of Issues

Issue 1:

Should the Commission approve the request for waiver of the carrier selection requirements of Rule 25-4.118, Florida Administrative Code, in the transfer of STARTEC Global Operating Company’s customers to Americatel Corporation d/b/a 1010 123 Americatel d/b/a 10-15-688 AMETEX d/b/a 1 800 3030 123 Americatel Collect?

Recommendation:

Yes, the Commission should approve the request for waiver of the carrier selection requirements of Rule 25-4.118, Florida Administrative Code. (M. Watts/McKay)

Staff Analysis:

Pursuant to Rule 25-4.118(1), Florida Administrative Code, a customer’s carrier cannot be changed without the customer’s authorization. Rule 25-4.118(2), Florida Administrative Code, provides that a carrier shall submit a change request only if one of the following has occurred:

(a) The provider has a letter of agency (LOA) . . . from the customer requesting the change;

(b) The provider has received a customer-initiated call for service . . . ;

(c) A firm that is independent and unaffiliated with the provider . . . has verified the customer’s requested change . . .

Pursuant to Rule 25-24.475(3), Florida Administrative Code, Rule 25-4.118, Florida Administrative Code, is incorporated into Chapter 25-24, and applies to IXCs.

Rule 25-24.455(2), Florida Administrative Code, states:

An IXC may petition for a waiver of any provision of this Part. The waiver shall be granted in whole, granted in Part or denied based on the following:

(a) The factors enumerated in Section 364.337(4), Florida Statutes;

(b) The extent to which competitive forces may serve the same function as, or obviate the necessity for, the provision sought to be waived;

(d) Whether the waiver is in the public interest.

The authority for Rule 25-4.118, Florida Administrative Code, is found in Section 364.603, Florida Statutes, which is a section the Commission is authorized to waive.

Americatel has attested that it will provide for a seamless transition while ensuring that the affected customers understand available choices with the least amount of disruption to the customers. Staff reviewed the notice that was sent to STARTEC ’s customers and found it to be adequate. The customers should not experience any interruption of service, rate increase, or switching fees.

Neither STARTEC nor Americatel has any outstanding regulatory assessment fees, penalties or interest associated with its IXC registration. As of the filing date of this recommendation, Americatel has two active customer complaints on file with the Commission, and STARTEC has no active customer complaints. Americatel is actively working with Commission staff to resolve these complaints. Americatel stated in its petition that STARTEC customers could continue to use the existing customer service numbers for complaints both before and after the merger. After the merger, Americatel agrees to handle any complaints that are filed by STARTEC customers, including any complaints involving issues prior to the merger and any pending STARTEC complaints.

Staff believes that in this instance it is appropriate to waive the carrier selection requirements of Rule 25-4.118, Florida Administrative Code. If prior authorization had been required in this event, customers may have failed to respond to a request for authorization, neglected to select another carrier, and lost their long distance services. Furthermore, staff believes that granting this waiver will avoid unnecessary slamming complaints during this transition.

Therefore, staff recommends that the Commission approve the request for waiver of the carrier selection requirements of Rule 25-4.118, Florida Administrative Code, in the transfer of STARTEC Global Operating Company’s customers to Americatel Corporation d/b/a 1010 123 Americatel d/b/a 10-15-688 AMETEX d/b/a 1 800 3030 123 Americatel Collect.

Issue 2:

Should this docket be closed?

Recommendation:

If no person whose substantial interests are affected by the proposed agency action files a protest within 21 days of the issuance of the order, this order should become final upon issuance of a consummating order. This docket should remain open pending notification from the company of the completion of its merger transaction and the cancellation of IXC Registration No. TK051. Upon completion of these actions, this docket should be closed administratively. (McKay)

Staff Analysis: