
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 47USC226]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
                 CHAPTER 5--WIRE OR RADIO COMMUNICATION
 
                     SUBCHAPTER II--COMMON CARRIERS
 
                    Part I--Common Carrier Regulation
 
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--
---------------------------------------------------------------------------
    \1\ So in original. The comma probably should not appear.
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            (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.

(June 19, 1934, ch. 652, title II, Sec. 226, as added Pub. L. 101-435, 
Sec. 3, Oct. 17, 1990, 104 Stat. 987; amended Pub. L. 101-555, Sec. 4, 
Nov. 15, 1990, 104 Stat. 2760; Pub. L. 102-538, title II, Sec. 207, Oct. 
27, 1992, 106 Stat. 3543; Pub. L. 103-414, title III, Secs. 303(a)(10), 
304(a)(8), Oct. 25, 1994, 108 Stat. 4294, 4297.)


                               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.''

                  Section Referred to in Other Sections

    This section is referred to in sections 152, 153 of this title.
