[comp.dcom.telecom] What Was the Real Reason For Change in AT&T Cards?

Ken Abrams <kabra437@athenanet.com> (06/10/91)

I think that this latest move on the part of AT&T will lose them an
important competetive advangage, that is having the same card number
for both local and LD use.  In my case, it is certainly making me think
long and hard about contacting one of the other companies, not only for
credit card service but for 1+ service at home too.  Another marketing
coup in the mill.  Wonder if some other carrier is paying AT&T employees
to do these dumb things ... nah, probably would be a waste of money.
 
Additionally I am upset by the misrepresentation of the reason for the
changes in the AT&T card numbers.  I am no lawyer and I may not know
the whole story but I think that the statement something to the affect
that the change is being made because of "government rules" is so
misleading that it borders on an outright lie.  I think the "government 
rule" that they are referring to is one that simply states "the RBOC
must make available to the OCCs the database used for credit card
verification and (here comes the important part) the OCC must ***PAY*** 
the RBOC for using that database."
 
I believe that the main reason for the change is a cost cutting move
on the part of AT&T.  Simple as that; they don't want to pay the RBOC
to share numbers anymore.  Anybody at AT&T care to refute or clarify
this "government rule" for me.  I hope they save big bucks because
they will probably lose me as a customer.

Martin B Weiss <mbw@unix.cis.pitt.edu> (06/12/91)

In article <telecom11.449.2@eecs.nwu.edu> kabra437@athenanet.com (Ken
Abrams) writes:

> Additionally I am upset by the misrepresentation of the reason for the
> changes in the AT&T card numbers.  I am no lawyer and I may not know
> the whole story but I think that the statement something to the affect
> that the change is being made because of "government rules" is so
> misleading that it borders on an outright lie.  I think the "government 
> rule" that they are referring to is one that simply states "the RBOC
> must make available to the OCCs the database used for credit card
> verification and (here comes the important part) the OCC must ***PAY*** 
> the RBOC for using that database."

While I am unfamiliar with the details of this, it is consistent with
the spirit if not the letter of the recent AOS legislation.  One of
the problems of using the same number was that it may have been easier
for AOS companies to take the calls, even though they weren't
authorized to do it.  Having a different number makes this more
difficult.  Also (although unrelated) AT&T was required to provide
950-xxxx access as well as 10xxx access, as has been done by other
carriers.  I have an MCI card for the reason that 950 access was
possible -- which is a measure of solid protection against overcharges
from COCOTs or hotels.

The other thing is, a unique number makes it clearer to the consumer
that they are dealing with separate companies.  Do you expect your
Visa and American Express cards to have the same numbers?


Martin Weiss   Telecommunications Program, University of Pittsburgh
Internet: mbw@lis.pitt.edu OR mbw@unix.cis.pitt.edu   BITNET: mbw@pittvms

andys@ulysses.att.com (06/12/91)

In article <telecom11.449.2@eecs.nwu.edu> you write:

> I think that this latest move on the part of AT&T will lose them an
> important competetive advangage, that is having the same card number
> for both local and LD use.  In my case, it is certainly making me think
> long and hard about contacting one of the other companies, not only for
> credit card service but for 1+ service at home too.  Another marketing
> coup in the mill.  Wonder if some other carrier is paying AT&T employees
> to do these dumb things ... nah, probably would be a waste of money.

Obviously, you missed the followup traffic from AT&T people, including
me, on this.  AT&T now buys card verification services from the LECs
for LEC issued card numbers (the ones with your home phone) and sells
card verification services to the LECs for AT&T issued card numbers
(the new Calling Cards and the Universal Cards).  AT&T does *not* sell
card verification services to OCCs.  Thus you may charge both local
and AT&T carried long distance calls on your new AT&T Calling Card,
just as you already can on your Universal Card.  Why switch?

> Additionally I am upset by the misrepresentation of the reason for the
> changes in the AT&T card numbers.  I am no lawyer and I may not know
> the whole story but I think that the statement something to the affect
> that the change is being made because of "government rules" is so
> misleading that it borders on an outright lie.  I think the "government 
> rule" that they are referring to is one that simply states "the RBOC
> must make available to the OCCs the database used for credit card
> verification and (here comes the important part) the OCC must ***PAY*** 
> the RBOC for using that database."

I don't know what the legal issues are.  Rest assured that if they
apply to us, they will apply to the OCCs as well, by and by.  To my
knowledge, we've been paying for card verification for a long time.

> I believe that the main reason for the change is a cost cutting move
> on the part of AT&T.  Simple as that; they don't want to pay the RBOC
> to share numbers anymore.  Anybody at AT&T care to refute or clarify
> this "government rule" for me.  I hope they save big bucks because
> they will probably lose me as a customer.

Other than any legal requirements or encouragements, there is ample
reason for AT&T to want to make this move.  A transition from being a
service customer to a service provider is certainly good business.
Lowering our cost structure is not an evil thing.  It enables that
money to be better spent elsewhere.  But beyond costs, consider this:
your AT&T Calling Card number will be yours forever, *FOR CHARGING
BOTH LOCAL AND AT&T LONG DISTANCE CALLS*, no matter how many times you
move or change your home phone number.  Furthermore, no AOS will be
able to bill to that card number.  There has been an enormous volume
of customer complaints on the order of "I charged it to my AT&T Card
but then Joe's Bar, Grill, and Telco charged me 10 times normal for
the call".  That can't happen with the new card.

I hope we don't lose you as a customer.  Certainly, the new card
should be a plus, not a minus, once you understand what it can do. And
it *CAN* do your local calls.


Andy Sherman/AT&T Bell Laboratories/Murray Hill, NJ
AUDIBLE:  (908) 582-5928
READABLE: andys@ulysses.att.com  or att!ulysses!andys
What? Me speak for AT&T?  You must be joking!

Steve Forrette <forrette@cory.berkeley.edu> (06/12/91)

It was written:

[stuff about 14 digit random AT&T calling cards deleted]

> I believe that the main reason for the change is a cost cutting move
> on the part of AT&T.  Simple as that; they don't want to pay the RBOC
> to share numbers anymore.  Anybody at AT&T care to refute or clarify
> this "government rule" for me.  I hope they save big bucks because
> they will probably lose me as a customer.

The databases are still being shared.  The RBOCs accept the 14 digit
random AT&T cards, and AT&T still accepts the RBOC cards, whether or
not they're related to your phone number.  The big difference is that
the other long distance carriers will not have access to the random
AT&T cards, although they still have access to the RBOC cards.


Steve Forrette, forrette@cory.berkeley.edu

"Ole J. Jacobsen" <ole@csli.stanford.edu> (06/13/91)

I got my new AT&T calling card the other day. I immediately had to
call AT&T to find out what line the card pertains to, since the new
magic number bears no relation to the old scheme, and AT&T did not
have the sense to print "This card is for use with your line
415-550-xxxx" in the printed advisory that follows the card. (I have
five lines, some of which are "for business" so I do need to know what
calls I am charging to what account).

I mentioned the fact that I did not believe this new scheme had
anything to do with "government regulations" and the AT&T person
responded: "What people on the outside did not know is that AT&T has
not been fully divested until now. The new calling card system is the
final stage of divestiture as required by law.."

I'm not convinced. I think there are two basic reasons for why they
did this:

1. Old AT&T cards are now being accepted by other carriers. I have
been billed by all sort of outfits from MCI to Joe Random carrier by
simply using the good 'ol 10-digit + PIN scheme. AT&T obviously hates
this and wants the new "proprietary cards" to secure their revenue.

2. As metioned in the Digest already, with the new cards, billing will
be (I presume) handled by AT&T directly and thus no (costly)
arrangements with the RBOCs need to be in place.

Anybody know how much of a "grace period" they are going to give us
with the old cards?


Ole J Jacobsen, Editor & Publisher ConneXions--The Interoperability Report
Interop, Inc., 480 San Antonio Road, Suite 100, Mountain View, CA 94040,
Phone: (415) 941-3399  FAX: (415) 949-1779  Email: ole@csli.stanford.edu
Direct: (415) 962-2515

Bill Huttig <wah@zach.fit.edu> (06/16/91)

In article <telecom11.457.3@eecs.nwu.edu> ole@csli.stanford.edu (Ole
J. Jacobsen) writes:

> not been fully divested until now. The new calling card system is the
> final stage of divestiture as required by law.."

 As far as I know it is true that this was one of the requirements.

> 1. Old AT&T cards are now being accepted by other carriers. I have

 The old AT&T cards are not accepted by other carriers. The LEC cards
are accepted by the other carriers. They contain the same PIN as the
AT&T card did.

> 2. As metioned in the Digest already, with the new cards, billing will
> be (I presume) handled by AT&T directly and thus no (costly)
> arrangements with the RBOCs need to be in place.

The new cards will be billed along with your AT&T 1+ charges to the
LEC if that is where you requested billing.

andys@ulysses.att.com (06/17/91)

In article <telecom11.457.3@eecs.nwu.edu> is written:

>  I'm not convinced. I think there are two basic reasons for why they
>  did this:

>  1. Old AT&T cards are now being accepted by other carriers. I have
>  been billed by all sort of outfits from MCI to Joe Random carrier by
>  simply using the good 'ol 10-digit + PIN scheme. AT&T obviously hates
>  this and wants the new "proprietary cards" to secure their revenue.

Please note that it is not just a matter of securing our revenues.
Consider this: every time a customer thinks they are using an "AT&T
Card" and gets billed by an AOS it creates a customer relations
problem for AT&T with "brand loyal" customers.  Many of these
customers have a hard time understanding that use of the LEC issued
billing number is not under AT&T's control, even though the number
appears on a credit card with the AT&T logo on it.  

The best way to deal with that is to issue card numbers that AT&T
*does* control.  There has been overwhelming customer unhappiness with
the old calling card scheme that left them with big charges from
companies with whom they had no intention of doing business.  Yes the
new system is good for AT&T.  It is also good for most customers.

>  2. As metioned in the Digest already, with the new cards, billing will
>  be (I presume) handled by AT&T directly and thus no (costly)
>  arrangements with the RBOCs need to be in place.

The new calling cards (other than Universal Cards) do *not* change the
method of billing.  Billing methods are determined by the ultimate
billing telphone number for your AT&T account.  In most LATAs
residence billing is still handled by sending call detail back to the
LEC to bill.  Changes to the billing system are a separate issue.

What *does* change is the customer-supplier relationship for card
verification services.  Instead of buying verification from the LEC
for use of their card numbers on long distance calls, for the new
cards AT&T will sell verification for it's card numbers when used for
local calls.  Yes, this is a cost saving.  This is bad?

|> Anybody know how much of a "grace period" they are going to give us
|> with the old cards?

I assume that a valid LEC card number will always be accepted, but I
have no good information on this.


Andy Sherman/AT&T Bell Laboratories/Murray Hill, NJ
AUDIBLE:  (908) 582-5928
READABLE: andys@ulysses.att.com  or att!ulysses!andys
What? Me speak for AT&T?  You must be joking!

Ken Abrams <kabra437@athenanet.com> (06/18/91)

In article <telecom11.451.2@eecs.nwu.edu> andys@ulysses.att.com
writes:

> In article <telecom11.449.2@eecs.nwu.edu> you write:

> Obviously, you missed the followup traffic from AT&T people, including
> me, on this.  AT&T now buys card verification services from the LECs

Apparently I did miss some articles.  I didn't even see MY post and
only realized it had been published when I started receiving mail.

> I hope we don't lose you as a customer.  Certainly, the new card
> should be a plus, not a minus, once you understand what it can do. And
> it *CAN* do your local calls.

I have received about five mail messages and have seen a couple of
posts but so far, nobody has been able to tell me what the "government
rules" are which "forced" AT&T to make this change (or so the
literature implied).  Some folks have been nice enough to tell me what
the "real" reasons are for the change.  Why were some of those things
not mentioned in the announcement instead of the tripe about
government rules??  I dislike being deceived even more than I dislike
shoddy service!

Several people have mentioned that the "old" (LEC) card number will
still work for some unknown period of time.  If this is true, the
(potential) confusion with OCCs will still exist.  I strongly suspect
that there will be a cut-off for using the old numbers and it will not
be in the too distant future.  To achieve some of the aforementioned
benefits, AT&T must stop accepting the LEC card numbers.  After this
happens, I suspect the the RBOCs will stop accepting AT&T cards for
local calls since they will then be paying to access AT&T's data base
for verification.

The business benifits for AT&T are fairly obvious; the benefits to the
consumer are not quite so obvious, however.  As long as I can place a
credit card call to my home number by dialing only 4 additional
digits, I will stay with AT&T.  If, and when, they force me to use the
new number, my decision will probably go the other way if I can find a
carrier that will let me use my phone number for credit card calls.


Ken Abrams           nstar!pallas!kabra437
Illinois Bell        kabra437@athenanet.com
Springfield          (voice) 217-753-7965

andys@ulysses.att.com (06/19/91)

In article <telecom11.467.4@eecs.nwu.edu> kabra437@athenanet.com (Ken
Abrams) writes:

>  I have received about five mail messages and have seen a couple of
>  posts but so far, nobody has been able to tell me what the "government
>  rules" are which "forced" AT&T to make this change (or so the
>  literature implied).  Some folks have been nice enough to tell me what
>  the "real" reasons are for the change.  Why were some of those things
>  not mentioned in the announcement instead of the tripe about
>  government rules??  I dislike being deceived even more than I dislike
>  shoddy service!

What we all gave you were lots of good reasons for AT&T to start using
its own card numbers, even if there were no regulatory considerations.
However, there is one.  In short, the FCC says we have to issue cards
with our own card numbers on them or get out of the card issuing
business.  Currently, under the terms of Shared Network Access
Facility Arrangements (SNAFA) set forth by the FCC, AT&T and RBOCS are
allowed to share the database and credit card numbers used for card
validation.  

As of 1/1/92, the SNAFA come to an end, and the RBOCS *MUST* use their
own database for their own cards and AT&T *MUST* use its own database
for its own cards (or get out of the card business).  I think that the
RBOCs and AT&T are free to sell each other verification services for
calls carried by one and billed to the others card, so an RBOC Calling
Card should still be able to be used for AT&T calls, just as your
Universal Card can be used for RBOC carried calls.

Nobody is deceiving you.  Come 1/1/92, any card issued by AT&T must
have a different number from a card issued by the LECs.  I've not seen
the announcement that came with the cards, but I gather it wasn't
detailed.  But explaining all that stuff in the above paragraph to the
general consumer LD marketplace (as opposed to Telecom Digest readers)
is not an easy task.  If you tell too little you get flamed in the
Digest.  If you tell too much, you confuse an awful lot of people with
information they neither want nor need.  The statement that new card
numbers are being issued because of new regulatory requirements is
complete and accurate.  Now, if *I* were writing the enclosure, I'd
sure put an "and by the way, you get these benefits as a side effect"
paragraph and make it clear that local calls can be charged to the new
AT&T card.  But that's just a quibble.  The enclosure was honest,
after all (as I always hoped and expected of my employer).

I hope that this can put the deception issue out to pasture once and
for all.

>  Several people have mentioned that the "old" (LEC) card number will
>  still work for some unknown period of time.  If this is true, the
>  (potential) confusion with OCCs will still exist.  I strongly suspect
>  that there will be a cut-off for using the old numbers and it will not
>  be in the too distant future.  To achieve some of the aforementioned
>  benefits, AT&T must stop accepting the LEC card numbers.  After this
>  happens, I suspect the the RBOCs will stop accepting AT&T cards for
>  local calls since they will then be paying to access AT&T's data base
>  for verification.

As I pointed out to you in private mail, unless the FCC forbids it,
I'd imagine that any IXC would want to accept LEC-issued cards to pick
up casual business from people who have other Dial-1 carriers.  The
major business benefits from the new cards in terms of relationships
with regular customers still applies.  Depending on the nature of the
regulations, I doubt that the LECs would stop using AT&T and/or OCC
verification services out of pique.  They risk pissing off too many
people.

>  The business benifits for AT&T are fairly obvious; the benefits to the
>  consumer are not quite so obvious, however.  As long as I can place a
>  credit card call to my home number by dialing only 4 additional
>  digits, I will stay with AT&T.  If, and when, they force me to use the
>  new number, my decision will probably go the other way if I can find a
>  carrier that will let me use my phone number for credit card calls.

In the absence of any regulations, the consumer still benefits from
protection against inadvertant AOS billing.  Given the volume of
customer complaints on this issue, AOS billing to what customers
*thought* was and AT&T card is a customer relations problem, not to
mention lost revenue.  But it is good for the consumers to know that
they can control with whom they do business by what card they use,
which they cannot with the old cards.

But all that is beside the point, in a way.  The Feds require the
change.  This is just why it would be a good thing to do anyway.


Andy Sherman/AT&T Bell Laboratories/Murray Hill, NJ
AUDIBLE:  (908) 582-5928
READABLE: andys@ulysses.att.com  or att!ulysses!andys
What? Me speak for AT&T?  You must be joking!
[But the regulatory information did come from reliable sources]

Skip Collins <collins@aplcomm.jhuapl.edu> (06/19/91)

Andy Sherman writes:

> In the absence of any regulations, the consumer still benefits from
> protection against inadvertant AOS billing.  Given the volume of
> customer complaints on this issue, AOS billing to what customers
> *thought* was and AT&T card is a customer relations problem, not to
> mention lost revenue.  But it is good for the consumers to know that
> they can control with whom they do business by what card they use,
> which they cannot with the old cards.

Couldn't consumers control with whom they do business by using carrier
access codes such as 10ATT, 10222 etc.?  Why do we need separate cards
and separate numbers to carry around and remember?  If I have a 14
digit account number which is recognized by all the LD carriers that I
access via 10XXX, I'm happy.  This is exactly what I have now with my
LEC card.  I hope I am not forced to switch.


Skip Collins, collins@aplcomm.jhuapl.edu

Brian Charles Kohn <bicker@hoqax.att.com> (06/20/91)

In article <telecom11.470.8@eecs.nwu.edu> collins@aplcomm.jhuapl.edu
(Skip Collins) writes:

> Couldn't consumers control with whom they do business by using carrier
> access codes such as 10ATT, 10222 etc.?

No.

> Why do we need separate cards
> and separate numbers to carry around and remember?  If I have a 14
> digit account number which is recognized by all the LD carriers that I
> access via 10XXX, I'm happy.  This is exactly what I have now with my
> LEC card.  I hope I am not forced to switch.

As previously stated, you will be able to take your chances with your
current LEC card and selecting your long distance carrier via 10XXX.
However, almost none of the privately-owned coin phones in my area
accept 10XXX, and those that do accept the code ignore it.  Of course
I refuse the charges on my bill from AOSs that steal my business in
this way, however it is a hassle convincing NJ Bell that I am in my
rights.

(Which is strange because they rarely give he a hard time when there's
an errant LOCAL charge on my bill ... I guess that's because it's
easier for them to fix their own problems that it is to fix AOS's
problems.)

Related quetsion: What obligation to AOSs have currently to provide
access to "the big three" via 10XXX?  Can I request a phone be taken
out of service if it doesn't respond to the code and the AOS operator
cannot connect me to AT&T directly?


Brian Charles Kohn          AT&T Bell Laboratories Quality Process Center
Quality Management System   E-MAIL: att!hoqax!bicker  (bicker@hoqax.ATT.COM)
Consultant                  PHONE: (908) 949-5850        FAX: (908) 949-7724