FCC moves to quell WorldCom customer concerns

The FCC today issued a consumer bulletin that describes the rights and protections consumers have concerning WorldCom’s bankruptcy filing.

Chairman Michael Powell said in a statement the commission acted in response to “the many consumer concerns” it has received about WorldCom’s situation and its potential effect on telephone service. He said the FCC would not permit WorldCom to cut-off service to a customer in the wake of the bankruptcy filing.

“The FCC has regulations in place to protect consumers’ telephone service and we will vigorously enforce those rules,” Powell said.

Specifically, FCC rules require telcos to provide written notice to affected customers of any planned disconnection of service, and the notice must clearly state that the customer has the right to file comments with the commission. Telephone companies must also file for FCC permission to disconnect service, and are prevented from terminating service for at least 30 days after the commission issues a public notice on the matter. Finally, the FCC can extend the termination date at its discretion.

Should WorldCom sell all or part of its assets during the bankruptcy proceeding, customers are still protected. The company that acquires the assets must provide 30-days advance notice of a pending transfer of service, including information about its rates and services. Customers then choose whether to accept the transfer. Those who don’t accept are free to choose another provider without penalty. Finally, any customer transferred to another provider without their permission would be eligible for relief under the FCC’s slamming rules.

The FCC has also warned WorldCom of its obligations during the bankruptcy proceeding. In a letter sent to WorldCom CEO John Sidgmore earlier this week, Powell said the commission would intervene in the bankruptcy proceeding should WorldCom take actions that result in “an unnoticed termination of service.”

– Glenn Bischoff, senior writer