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Telegraphs, Telephones, and Radiotelegraphs - 47 USC Section 226
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01/19/04 Sec. 226. Telephone operator services
(a) Definitions
As used in this section -
(1) The term "access code" means a sequence of numbers that,
when dialed, connect the caller to the provider of operator
services associated with that sequence.
(2) The term "aggregator" means any person that, in the
ordinary course of its operations, makes telephones available to
the public or to transient users of its premises, for interstate
telephone calls using a provider of operator services.
(3) The term "call splashing" means the transfer of a telephone
call from one provider of operator services to another such
provider in such a manner that the subsequent provider is unable
or unwilling to determine the location of the origination of the
call and, because of such inability or unwillingness, is
prevented from billing the call on the basis of such location.
(4) The term "consumer" means a person initiating any
interstate telephone call using operator services.
(5) The term "equal access" has the meaning given that term in
Appendix B of the Modification of Final Judgment entered August
24, 1982, in United States v. Western Electric, Civil Action No.
82-0192 (United States District Court, District of Columbia), as
amended by the Court in its orders issued prior to October 17,
1990.
(6) The term "equal access code" means an access code that
allows the public to obtain an equal access connection to the
carrier associated with that code.
(7) The term "operator services" means any interstate
telecommunications service initiated from an aggregator location
that includes, as a component, any automatic or live assistance
to a consumer to arrange for billing or completion, or both, of
an interstate telephone call through a method other than -
(A) automatic completion with billing to the telephone from
which the call originated; or
(B) completion through an access code used by the consumer,
with billing to an account previously established with the
carrier by the consumer.
(8) The term "presubscribed provider of operator services"
means the interstate provider of operator services to which the
consumer is connected when the consumer places a call using a
provider of operator services without dialing an access code.
(9) The term "provider of operator services" means any common
carrier that provides operator services or any other person
determined by the Commission to be providing operator services.
(b) Requirements for providers of operator services
(1) In general
Beginning not later than 90 days after October 17, 1990, each
provider of operator services shall, at a minimum -
(A) identify itself, audibly and distinctly, to the consumer
at the beginning of each telephone call and before the consumer
incurs any charge for the call;
(B) permit the consumer to terminate the telephone call at no
charge before the call is connected;
(C) disclose immediately to the consumer, upon request and at
no charge to the consumer -
(i) a quote of its rates or charges for the call;
(ii) the methods by which such rates or charges will be
collected; and
(iii) the methods by which complaints concerning such
rates, charges, or collection practices will be resolved;
(D) ensure, by contract or tariff, that each aggregator for
which such provider is the presubscribed provider of operator
services is in compliance with the requirements of subsection
(c) of this section and, if applicable, subsection (e)(1) of
this section;
(E) withhold payment (on a location-by-location basis) of any
compensation, including commissions, to aggregators if such
provider reasonably believes that the aggregator (i) is
blocking access by means of "950" or "800" numbers to
interstate common carriers in violation of subsection (c)(1)(B)
of this section or (ii) is blocking access to equal access
codes in violation of rules the Commission may prescribe under
subsection (e)(1) of this section;
(F) not bill for unanswered telephone calls in areas where
equal access is available;
(G) not knowingly bill for unanswered telephone calls where
equal access is not available;
(H) not engage in call splashing, unless the consumer
requests to be transferred to another provider of operator
services, the consumer is informed prior to incurring any
charges that the rates for the call may not reflect the rates
from the actual originating location of the call, and the
consumer then consents to be transferred; and
(I) except as provided in subparagraph (H), not bill for a
call that does not reflect the location of the origination of
the call.
(2) Additional requirements for first 3 years
In addition to meeting the requirements of paragraph (1),
during the 3-year period beginning on the date that is 90 days
after October 17, 1990, each presubscribed provider of operator
services shall identify itself audibly and distinctly to the
consumer, not only as required in paragraph (1)(A), but also for
a second time before connecting the call and before the consumer
incurs any charge.
(c) Requirements for aggregators
(1) In general
Each aggregator, beginning not later than 90 days after October
17, 1990, shall -
(A) post on or near the telephone instrument, in plain view
of consumers -
(i) the name, address, and toll-free telephone number of
the provider of operator services;
(ii) a written disclosure that the rates for all
operator-assisted calls are available on request, and that
consumers have a right to obtain access to the interstate
common carrier of their choice and may contact their
preferred interstate common carriers for information on
accessing that carrier's service using that telephone; and
(iii) the name and address of the enforcement division of
the Common Carrier Bureau of the Commission, to which the
consumer may direct complaints regarding operator services;
(B) ensure that each of its telephones presubscribed to a
provider of operator services allows the consumer to use "800"
and "950" access code numbers to obtain access to the provider
of operator services desired by the consumer; and
(C) ensure that no charge by the aggregator to the consumer
for using an "800" or "950" access code number, or any other
access code number, is greater than the amount the aggregator
charges for calls placed using the presubscribed provider of
operator services.
(2) Effect of State law or regulation
The requirements of paragraph (1)(A) shall not apply to an
aggregator in any case in which State law or State regulation
requires the aggregator to take actions that are substantially
the same as those required in paragraph (1)(A).
(d) General rulemaking required
(1) Rulemaking proceeding
The Commission shall conduct a rulemaking proceeding pursuant
to this subchapter to prescribe regulations to -
(A) protect consumers from unfair and deceptive practices
relating to their use of operator services to place interstate
telephone calls; and
(B) ensure that consumers have the opportunity to make
informed choices in making such calls.
(2) Contents of regulations
The regulations prescribed under this section shall -
(A) contain provisions to implement each of the requirements
of this section, other than the requirements established by the
rulemaking under subsection (e) of this section on access and
compensation; and
(B) contain such other provisions as the Commission
determines necessary to carry out this section and the purposes
and policies of this section.
(3) Additional requirements to be implemented by regulations
The regulations prescribed under this section shall, at a
minimum -
(A) establish minimum standards for providers of operator
services and aggregators to use in the routing and handling of
emergency telephone calls; and
(B) establish a policy for requiring providers of operator
services to make public information about recent changes in
operator services and choices available to consumers in that
market.
(e) Separate rulemaking on access and compensation
(1) Access
The Commission,(!1) shall require -
(A) that each aggregator ensure within a reasonable time that
each of its telephones presubscribed to a provider of operator
services allows the consumer to obtain access to the provider
of operator services desired by the consumer through the use of
an equal access code; or
(B) that all providers of operator services, within a
reasonable time, make available to their customers a "950" or
"800" access code number for use in making operator services
calls from anywhere in the United States; or
(C) that the requirements described under both subparagraphs
(A) and (B) apply.
(2) Compensation
The Commission shall consider the need to prescribe
compensation (other than advance payment by consumers) for owners
of competitive public pay telephones for calls routed to
providers of operator services that are other than the
presubscribed provider of operator services for such telephones.
Within 9 months after October 17, 1990, the Commission shall
reach a final decision on whether to prescribe such compensation.
(f) Technological capability of equipment
Any equipment and software manufactured or imported more than 18
months after October 17, 1990, and installed by any aggregator
shall be technologically capable of providing consumers with access
to interstate providers of operator services through the use of
equal access codes.
(g) Fraud
In any proceeding to carry out the provisions of this section,
the Commission shall require such actions or measures as are
necessary to ensure that aggregators are not exposed to undue risk
of fraud.
(h) Determinations of rate compliance
(1) Filing of informational tariff
(A) In general
Each provider of operator services shall file, within 90 days
after October 17, 1990, and shall maintain, update regularly,
and keep open for public inspection, an informational tariff
specifying rates, terms, and conditions, and including
commissions, surcharges, any fees which are collected from
consumers, and reasonable estimates of the amount of traffic
priced at each rate, with respect to calls for which operator
services are provided. Any changes in such rates, terms, or
conditions shall be filed no later than the first day on which
the changed rates, terms, or conditions are in effect.
(B) Waiver authority
The Commission may, after 4 years following October 17, 1990,
waive the requirements of this paragraph only if -
(i) the findings and conclusions of the Commission in the
final report issued under paragraph (3)(B)(iii) state that
the regulatory objectives specified in subsection (d)(1)(A)
and (B) of this section have been achieved; and
(ii) the Commission determines that such waiver will not
adversely affect the continued achievement of such regulatory
objectives.
(2) Review of informational tariffs
If the rates and charges filed by any provider of operator
services under paragraph (1) appear upon review by the Commission
to be unjust or unreasonable, the Commission may require such
provider of operator services to do either or both of the
following:
(A) demonstrate that its rates and charges are just and
reasonable, and
(B) announce that its rates are available on request at the
beginning of each call.
(3) Proceeding required
(A) In general
Within 60 days after October 17, 1990, the Commission shall
initiate a proceeding to determine whether the regulatory
objectives specified in subsection (d)(1)(A) and (B) of this
section are being achieved. The proceeding shall -
(i) monitor operator service rates;
(ii) determine the extent to which offerings made by
providers of operator services are improvements, in terms of
service quality, price, innovation, and other factors, over
those available before the entry of new providers of operator
services into the market;
(iii) report on (in the aggregate and by individual
provider) operator service rates, incidence of service
complaints, and service offerings;
(iv) consider the effect that commissions and surcharges,
billing and validation costs, and other costs of doing
business have on the overall rates charged to consumers; and
(v) monitor compliance with the provisions of this section,
including the periodic placement of telephone calls from
aggregator locations.
(B) Reports
(i) The Commission shall, during the pendency of such
proceeding and not later than 5 months after its commencement,
provide the Congress with an interim report on the Commission's
activities and progress to date.
(ii) Not later than 11 months after the commencement of such
proceeding, the Commission shall report to the Congress on its
interim findings as a result of the proceeding.
(iii) Not later than 23 months after the commencement of such
proceeding, the Commission shall submit a final report to the
Congress on its findings and conclusions.
(4) Implementing regulations
(A) In general
Unless the Commission makes the determination described in
subparagraph (B), the Commission shall, within 180 days after
submission of the report required under paragraph (3)(B)(iii),
complete a rulemaking proceeding pursuant to this subchapter to
establish regulations for implementing the requirements of this
subchapter (and paragraphs (1) and (2) of this subsection) that
rates and charges for operator services be just and reasonable.
Such regulations shall include limitations on the amount of
commissions or any other compensation given to aggregators by
providers of operator service.
(B) Limitation
The requirement of subparagraph (A) shall not apply if, on
the basis of the proceeding under paragraph (3)(A), the
Commission makes (and includes in the report required by
paragraph (3)(B)(iii)) a factual determination that market
forces are securing rates and charges that are just and
reasonable, as evidenced by rate levels, costs, complaints,
service quality, and other relevant factors.
(i) Statutory construction
Nothing in this section shall be construed to alter the
obligations, powers, or duties of common carriers or the Commission
under the other sections of this chapter.
AMENDMENTS
1994 - Subsec. (d)(2) to (4). Pub. L. 103-414, Sec. 303(a)(10),
redesignated pars. (3) and (4) as (2) and (3), respectively, and
struck out heading and text of former par. (2). Text read as
follows: "The Commission shall initiate the proceeding required
under paragraph (1) within 60 days after October 17, 1990, and
shall prescribe regulations pursuant to the proceeding not later
than 210 days after October 17, 1990. Such regulations shall take
effect not later than 45 days after the date the regulations are
prescribed."
Subsec. (e)(1). Pub. L. 103-414, Sec. 304(a)(8), struck out
"within 9 months after October 17, 1990," after "The Commission,"
in introductory provisions.
1992 - Subsec. (d)(4)(A). Pub. L. 102-538 inserted "and
aggregators" after "operator services".
1990 - Subsec. (b)(1). Pub. L. 101-555, Sec. 4(a), substituted
"90 days" for "30 days".
Subsec. (b)(1)(J). Pub. L. 101-555, Sec. 4(b), struck out subpar.
(J) which read as follows: "not bill an interexchange telephone
call to a billing card number which -
"(i) is issued by another provider of operator services, and
"(ii) permits the identification of the other provider,
unless the call is billed at a rate not greater than the other
provider's rate for the call, the consumer requests a special
service that is not available under tariff from the other provider,
or the consumer expressly consents to a rate greater than the other
provider's rate."
Subsecs. (b)(2), (c)(1), (h)(1)(A). Pub. L. 101-555, Sec. 4(a),
substituted "90 days" for "30 days".
CONGRESSIONAL FINDINGS
Section 2 of Pub. L. 101-435 provided that: "The Congress finds
that -
"(1) the divestiture of AT&T and decisions allowing open entry
for competitors in the telephone marketplace produced a variety
of new services and many new providers of existing telephone
services;
"(2) the growth of competition in the telecommunications market
makes it essential to ensure that safeguards are in place to
assure fairness for consumers and service providers alike;
"(3) a variety of providers of operator services now compete to
win contracts to provide operator services to hotels, hospitals,
airports, and other aggregators of telephone business from
consumers;
"(4) the mere existence of a variety of service providers in
the operator services marketplace is significant in making that
market competitive only when consumers are able to make informed
choices from among those service providers;
"(5) however, often consumers have no choices in selecting a
provider of operator services, and often attempts by consumers to
reach their preferred long distance carrier by using a telephone
billing card, credit card, or prearranged access code number are
blocked;
"(6) a number of State regulatory authorities have taken action
to protect consumers using intrastate operator services;
"(7) from January 1988 through February 1990, the Federal
Communications Commission received over 4,000 complaints from
consumers about operator services;
"(8) those consumers have complained that they are denied
access to the interexchange carrier of their choice, that they
are deceived about the identity of the company providing operator
services for their calls and the rates being charged, that they
lack information on what they can do to complain about unfair
treatment by an operator service provider, and that they are,
accordingly, being deprived of the free choice essential to the
operation of a competitive market;
"(9) the Commission has testified that its actions have been
insufficient to correct the problems in the operator services
industry to date; and
"(10) a combination of industry self-regulation and government
regulation is required to ensure that competitive operator
services are provided in a fair and reasonable manner."
Last modified: June 19, 2006
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