CWA Comments on Toll-Free Directory Assistance

Before the

FEDERAL COMMUNICATIONS COMMISSION

Washington, D.C. 20554

In the Matter of )

Discontinuance-AT&T Toll-Free ) NSD File No. W-P-D-443

Directory Assistance Service )

1-800-555-1212 )

Petition to Deny of
Communications Workers of America

Debbie Goldman
George Kohl
501 Third St. N.W.
Washington, D.C. 20001
(202) 434-1194 (phone)
(202) 434-1201 (fax)
debbie@cwa-union.org

Dated: December 8, 1999

Summary

The Communications Workers of America (CWA) submits this Petition to Deny the application of AT&T Communications (AT&T) requesting authority under section 214(a) of the Communications Act of 1934 and section 63.71 of the Commission's rules to discontinue providing AT&T Toll-Free Directory Assistance Services, which is called by dialing 1-800-555-1212.

AT&T's application to discontinue providing AT&T Toll-Free Directory Assistance Services adversely affects the public convenience and necessity. There are 200 million calls every year to AT&T's Toll-Free Directory Assistance Service. Without toll-free directory assistance, end user customers would not be able to obtain the toll-free numbers they need to contact businesses, government organizations, social service agencies, and other national organizations, even as these organizations and businesses would lose a vital resource upon which they depend to maintain telephone communications with their customers, clients, members, and the public.

In addition, there is no reasonable substitute service for toll-free directory assistance. Although AT&T in its application states that there are substitutes, including Internet-based directories and caller-paid local and national directory assistance services such as 411, none of these is a reasonable substitute for toll-free directory assistance.

Internet-based directories are not a reasonable substitute for toll-free directory assistance service. According to the U.S. Commerce Department, three-quarters of U.S. households are not connected to the Internet and among low-income, minority, and elderly households, the rate drops to ten percent. Moreover, many consumers do not have Internet access at the moment they need an 800 number (an individual seeking to call a hotel from the airport, for example) and do not have always-on access to the Internet when they need an 800 number.

Furthermore, on-line services and 411 directory assistance do not provide complete and accurate listings. CWA conducted a test to compare the accuracy and speed of response among four different toll-free directory assistance providers: AT&T's toll-free directory assistance (1-800-555-1212), local directory assistance (411), and two Internet-based directories (AT&T's Anywho.com and Internet 800 Directory). We made the same 10 inquiries of each provider. AT&T's toll-free directory assistance provided the correct number for all ten inquiries in less than one minute. 411 was unable to provide the number for six of the 10 inquiries. (For the others, 411 suggested calling 1-800-555-1212.) Anywho.com provided the wrong number or had no listing for eight of the 10 inquiries, and required the customer to know the state in which the organization was located for the other two inquiries. Finally, Internet 800 Directory provided the correct number for only four of the 10 inquiries; each of these inquiries took over four minutes (including the time it took to turn on the computer and connect to the Internet), which is four times as long as it took to get the information from 1-800-555-1212. Based on the results of this test, we conclude that there is no reasonable substitute for AT&T's toll-free directory assistance service. (List provided in Appendix.)

Universally accessible toll-free directory assistance is a vital resource for consumers, businesses, government, and civic organizations. There is no reasonable substitute in the marketplace. The public would be adversely affected by its discontinuance. Therefore, based on the statutory framework and the Commission's rules, the Commission should deny the request by AT&T to discontinue its toll-free directory assistance.

I. Legal Framework for Consideration of AT&T's Request to Eliminate Toll-Free Directory Assistance Service

Section 214(a) of the Communications Act of 1934, as amended, and section 63.71 of the Commission's rules establish two criteria by which the Commission must evaluate a request by a non-dominant common carrier--such as AT&T--to discontinue service.

First, Section 214(a) of the Communications Act requires that the Commission determine that "neither the present nor future public convenience and necessity will be adversely affected" by discontinuance of the service.⁽¹⁾ Second, the Commission must determine that "customers would be unable to receive service or a reasonable substitute from another carrier."⁽²⁾ As we demonstrate in these comments, AT&T's application to discontinue its toll-free directory assistance service fails both these tests.

Further, when the Commission instituted streamlined Section 214 discontinuance procedures for non-dominant carriers, the Commission made clear that "[i]f a petition to deny were filed, we would act on the petition prior to any discontinuance."⁽³⁾ In the AT&T Non-Dominant Order, the Commission reaffirmed this position and explicitly stated that the provision would apply to any request by AT&T to discontinue a service.⁽⁴⁾ The Commission, therefore, is obligated to act on this Petition to Deny prior to any action which would authorize AT&T to discontinue its toll-free directory assistance service.

Finally, Section 63.71(a) of the Commission's rules requires non-dominant carriers to "notify all affected customers of the planned discontinuance, reduction, or impairment" of any service (emphasis added). Further, the Commission states that such notification "shall be in writing to each affected customer" (emphasis added) unless the Commission authorizes, in advance, another form of notice.⁽⁵⁾ One purpose of the advanced notification is to ensure that impacted customers have the opportunity to provide the Commission with information regarding the impact of the proposed discontinuance of service. In its application, AT&T states that it has informed Resp Orgs that provide 800-number service, state public utility commissions, Governors, and the U.S. Defense Department of its plan to discontinue its toll-free directory assistance service. However, it has failed to provide advance notification to all affected customers. In fact, all customers who purchase 800-numbers from AT&T and who depend upon toll-free directory assistance to provide those listings to end users are "affected customers" of the 800 service. Customers who purchase 800-service from AT&T also purchase their toll-free directory assistance listing as part of that service. CWA is one of the many organizations and businesses that purchase 800 service from AT&T. CWA--as well as all other customers who purchase AT&T's 800 service--did not receive advance notice from AT&T of its plan to discontinue toll-free directory assistance service. Therefore, AT&T is in violation of the Commission's rule which require advance notice to all affected customers of its plan for discontinuance of this service. The Commission should require AT&T to provide advance notification of its planned discontinuance of service to all its affected 800-service customers prior to any Commission action on AT&T's application.

II. There is No Substitute or Reasonable Substitute for Toll-Free Directory Assistance Service

AT&T states in its application that among the available substitutes for toll-free directory assistance are "carrier provided directory services, such as 411, as well as Internet-based directory assistance services, such as (AT&T's) AnyWho.com." AT&T claims that these alternatives provide "more accurate, updated numbers" than its own toll-free directory assistance. This statement is simply not an accurate description of the current marketplace. Contrary to AT&T's assertion in its application, there is no substitute nor reasonable substitute for AT&T's 1-800-555-1212 toll-free directory assistance service.

A. Most Americans Do Not Have Access to Internet-Based Directories.

Internet-based directories are not a reasonable substitute for toll-free directory assistance. As the U.S. Department of Commerce recently documented in its Falling Through the Net report, almost three-quarters (73.8 percent) of U.S. households do not have Internet access.⁽⁶⁾ Internet access drops precipitously for low-income, minority, rural, and elderly households--all of whom rely on toll-free directory service assistance. The Falling Through the Net report provides these statistics on Internet access:

Low-Income Households: Only 7.4 percent of U.S. households with annual income between $10,000 and $14,999 have Internet access (6 percent in rural areas) and only 15.9 percent of this income group have a computer. Among households with annual income between $15,000 and $19,999, only 9.8 percent have Internet access (8.4 percent in rural areas) and less than one-quarter (21.2 percent) in this income group have a computer.⁽⁷⁾
Middle Income Households: Even among households at the median income level ($35,000 - $49,999), only 29.5 percent have Internet access and only half (50.2 percent) have a computer.⁽⁸⁾
African-American and Hispanic Households: Just over one in ten African-American (11.2 percent) and Hispanic (12.6 percent) households have Internet access, and less than one-quarter of these ethnic minorities have computers (23.2 percent for African Americans and 25.5 percent for Hispanics).⁽⁹⁾
Elderly Households. Internet access also declines among elderly households. Only 14.6 percent of households age 55 and older have Internet connections.⁽¹⁰⁾

Clearly, for the three-quarters of U.S. households--and for the 90 percent of low-income, African-American, Hispanic, and elderly households--who do not have Internet access, Internet-based directories provide no substitute nor reasonable substitute for 1-800-555-1212.

But even for the minority of U.S. households with Internet access, Internet-based directories are not a reasonable substitute. Many end user customers require an 800-number when they do not have access to a computer or an Internet connection (in an airport or train station, for example). To cite but one example relevant to this commentator, many CWA (and other union) members do not have computer or on-line access in the workplace where they often have immediate need to contact their Union through an 800-number to discuss representation issues.

In addition, as we discuss below, Internet-based directories are much slower and far less accurate than calling 1-800-555-1212.

B. Internet-Based Directories and 411 Do Not Provide Timely, Accurate Information

Contrary to AT&T's assertion, there is no substitute or reasonable substitute available to individual consumers in today's marketplace. CWA conducted a test to compare the accuracy and speed of response among four different toll-free directory assistance providers. We selected two alternate providers cited by AT&T in its application (AT&T's on-line directory, AnyWho.com, and local 411 directory assistance) and an additional Internet-based directory called Internet 800 Directory (inter800.com). We also called 1-800-555-1212 (AT&T's toll-free directory assistance service.) We made the same 10 inquiries to each directory assistance provider. The results can be summarized as follows (see list provided Appendix):

AT&T's toll-free directory assistance provided the correct number for all ten inquiries in less than one minute at no cost to the customer.
411 was able to provide the number for only four of the 10 inquiries. For the others, the 411 operators suggested we call 1-800-555-1212. The cost of an inquiry to 411 ranged from a low of 25 cents in Maryland (with 6 free inquiries per month) to a high of 85 cents in Georgia (with no free inquiries).
Anywho.com, AT&T's Internet-based directory, provided the wrong number or had no listing for eight of the 10 inquiries and required the customer to know the state in which the organization was located for the other two inquiries.
Internet 800 Directory (inter800.com) provided the correct number for only four of the 10 inquiries. Each of these inquiries took over four minutes (including the time it took to turn on the computer and to connect to the Internet), four times as slow as getting the information from 1-800-555-1212.

Based on the results of this test, we conclude that there is no substitute nor reasonable substitute for AT&T's toll-free directory assistance service. Internet-based directories and 411 simply do not have an accurate database from which to provide end user consumers accurate (and timely) 800-number information.

III. Public Convenience and Necessity Will Be Adversely Affected By the Elimination of Toll-Free Directory Assistance

Individuals make 200 million calls annually to 1-800-555-1212.⁽¹¹⁾ The sheer volume of inquiries to toll-free directory assistance indicates that there is high consumer demand for this service.

Thousands of U.S. businesses depend upon toll-free directory assistance for their connection with customers. Several CWA-represented toll-free directory assistance operators reported to CWA on the types of inquiries for business listings that they received over a two-day period in November 1999. Customers requested 800-numbers for 62 different newspapers and magazines, 84 different banks and financial institutions, 22 different airlines, 23 different computer and on-line companies, 15 different utilities and telecommunications carriers, 168 different hotels and hotel chains, and 504 miscellaneous businesses from appliances to car manufacturers to apparel outlets to florists and balloon delivery services. We can only estimate the revenue loss that these businesses would experience if customers did not have access to their 800-number from a universally available source.

Businesses are not the only organizations that depend upon toll-free directory assistance for their link to their customers. CWA-represented operators report that many customers call 1-800-555-1212 to request 800-numbers of government organizations, such as the Social Security Administration or the Internal Revenue Service, and for the 800-numbers of national non-profit and civic organizations. Absent a free and universally accessible toll-free directory assistance, citizens will not know how to contact these organizations to obtain the information and services that they need. Absent a universally accessible toll-free directory assistance service, government and civic organizations will have to resort to expensive and less effective methods to publicize their 800-numbers. Many of these public and non-profit organizations lack the resources for such outreach efforts. The result will have serious negative implications for the equitable provision of government information and services, and would likely reduce citizen access to information and services provided by and participation in non-profit civic organizations.

IV. Other Issues

There remain many unanswered questions regarding AT&T's application to eliminate its toll-free directory assistance service. AT&T has provided the Commission with scanty information regarding the economics of this service.⁽¹²⁾ Nor has AT&T provided the Commission with usage data so that the Commission can verify AT&T's claim that the service is declining in importance to consumers. The Commission should request such information from AT&T and conduct a thorough investigation into the toll-free directory assistance marketplace prior to any decision on AT&T's application.

V. Conclusion

AT&T's application fails both tests required by statute and Commission rules for discontinuance of services. There is no substitute nor reasonable substitute for the service. Discontinuance will adversely affect the public convenience and necessity. Therefore, the Commission should deny AT&T's application to discontinue toll-free directory assistance service, a service which is vital to countless businesses, government and civic organizations in our society.

Respectfully Submitted,

George Kohl
Senior Executive Director
Research and Development

Dated: December 8, 1999

1. 47 U.S.C. § 214(a). This provision applies to all common carriers. The citation reads: "No carrier shall discontinue, reduce, or impair service to a community, or part of a community, unless and until there shall first have been obtained from the Commission a certificate that neither the present nor future public convenience and necessity will be adversely affected thereby...."

2. 47 C.F.R. § 63.71. This provision applies to domestic non-dominant carriers. This provision states that prior to discontinuance, impairment, or reduction in service, the non-dominant carrier is required to "notify all affected customers of the planned discontinuance, reduction, or impairment." Further, this provision states that the Commission will normally authorize this proposed discontinuance in service "unless it is shown that customers would be unable to receive service or a reasonable service from another carrier." Objectors are requested to file comments with the Commission with information about the impact of the proposed discontinuance on the commentator including "inability to acquire reasonable substitute service."

3. Policy and Rules Concerning Rates for Competitive Common Carrier Services and Facilities Authorizations Therefor, CC Docket No. 79-252, First Report and Order, 85 FCC 2d at 7-8 n. 13 (1980).

4. Motion of AT&T Corp. To be Reclassified a Non-Dominant Carrier, 11 FCC Rcd 3271 (1995) 12-13 and n.49 and n. 53.

5. 47 C.F.R. § 63.71(a).

6. U.S. Department of Commerce, National Telecommunications and Information Administration, Falling Through the Net: Defining the Digital Divide. A Report on the Telecommunications and Information Technology Gap in America, July 1999, Chart 1-1, p. 10. This report is also available at NTIA's website at http://www.ntia.doc.gov.

7. Id., Charts 1-12 (p. 17) and 1-21(p. 25).

8. Id.

9. Id., Chart 1-13 (p. 18) and 1-22 (p. 26).

10. Id., Chart 1-27 (p. 28).

11. This figure is based on data CWA obtained on monthly call volume in 1998. AT&T states in its application that call volume has remained relatively steady in recent years. The Commission should request call volume data from AT&T.

12. AT&T recovers costs for the service from Resp Orgs that list 800-numbers with AT&T's toll-free directory assistance service. Cost recovery is achieved through three mechanisms: an arrangement charge (provisioning and maintenance of toll-free service customer records), a listing charge ($1.02-$3.18 monthly per listing), and a usage charge (41.3 cents per each requested listing). Tariff F.C.C. No. 2, Wide Area Telecommunications Service, Section 9, AT&T Toll-Free Directory Assistance Service.