zellich@st-louis-emh2.army.mil (Rich Zellich) (04/25/89)
>From the St. Louis Post-Dispatch, 24 Apr 89.
---
P S C B a n s O p e r a t o r C o m p a n i e s
By Jerri Stroud
Of the Post-Dispatch Staff
The Missouri Public Service Commission voted 4-1 last week to ban providers
of so-called alternative operator services in Missouri because allowing the
companies to operate is "not in the public interest."
Alternative operator services companies contract with hotels, motels
colleges, hospitals, airports, restaurants and other facilities to provide
operator assistance to customers using pay telephones or house phones.
Consumer groups have complained about price-gouging by the companies
nationwide.
Mark Wheatley, a lawyer for the Office of Public Counsil [sic], praised the
commission's decision.
The Office of Public Counsel has received numerous complaints about excessive
rates and surcharges by alternative operator services companies, said Wheatley.
Some alternative operator services companies also have accepted other
companies' credit cards without authorization from the companies issuing the
cards, he said.
"We feel that it's an extremely important decision by the commission." said
Wheatley. But he said he expects the companies affected by the ruling to
appeal.
Lawyers for the alternative operator services companies could not be reached
for comment.
In it's ruling, the commission said many consumers aren't aware of the rates
charged by the alternative operator services companies until they receive "a
bill for operator services at prices higher than those to which he is
accustomed." Consumer groups say the rates often are twice or three times the
rates charged by better-known long-distance companies.
Even if an operator service company identifies itself when a consumer makes a
call, the commission said many consumers don't understand the significance of
the identification.
"If the end user is not educated as to the intricacies of using an alternative
operator services provider, he does not truly have a meaningful choice..." the
commission said.
The ruling only affects intrastate calls handled by alternative operator
services companies, but it may effectively prevent the companies from providing
interstate service as well.
The commission specifically denied tariff requests from International
Telecharge Inc. and American Operator Services Inc. The commission also
directed three other companies - Teleconnect Inc., Dial US and Dial USA - to
file new tariffs consistent with the ruling.
The ruling allows companies to operate who provide operator services in
connection with their business - long-distance carriers and local telephone
companies, for example. But the commission also placed limits on these
companies.
Under the ruling, operator services companies must:
* Identify themselves to the caller as well as to the party being billed by
the call (in the case of a collect or third-party call).
* Quote rates to the caller or billed party on request, without charge.
* Use calling card verification procedures acceptable to the companies
issuing the cards.
* Post in a prominent position the company's name, detailed complaint
procedures and instruction on how to reach the local telephone company
operator and other long-distance carriers.
* Transfer emergency traffic to the local telephone company or American
Telephone & Telegraph Co. until the alternative services provider can show
that it can handle emergency calls adequately.
---