MCI WorldCom to Pay $245,000 Penalty
Slamming and Cramming Order to Resolve 1,230 Complaints

Contact:
Terry Hadley 512-936-7135
Pager: 512-322-1457

Friday, June 21, 2002 -- The Public Utility Commission (PUC) this week ordered MCI WorldCom Communications, Inc. to pay a $245,000 penalty for slamming and cramming long distance phone customers and resolve 1,230 complaints.

"Texas phone customers deserve better service," said PUC Chair Becky Klein. "We expect MCI to prevent any future complaints to the company and to the PUC."

Slamming occurs when a provider switches a customer from another provider without customer authorization. Cramming happens when providers bill customers for unauthorized services.

The PUC directed MCI WorldCom to pay its penalty in three installments with the final payment due within six months after the order is signed. MCI WorldCom also agrees to resolve all slamming complaints received before Feb. 1, 2002 as quickly as possible and will provide the Commission with monthly status reports.

As part of the settlement, MCI already has made several customer service improvements that include:

• Establishing a consumer affairs and quality organization.
• Implementing a telemarketing code of conduct.
• Conducting mandatory training for all telemarketing employees and new hires.
• Creating performance and pay incentives for sales quality.
• Upgrading its third party verification process to ensure the customer confirms key account information.
• Starting a new credit policy for customers who claim they have been slammed.

The PUC encourages competition and customer choice while ensuring electric and telephone operations, services and rates are fair and reasonable.

Last Updated: 02/03/03