Sec.  64.1120   Verification of orders for telecommunications service.

   (a) No telecommunications carrier shall submit or execute a change on the
   behalf  of a subscriber in the subscriber's selection of a provider of
   telecommunications  service  except  in accordance with the procedures
   prescribed in this subpart. Nothing in this section shall preclude any State
   commission  from enforcing these procedures with respect to intrastate
   services.

   (1)  No  submitting  carrier  shall submit a change on the behalf of a
   subscriber in the subscriber's selection of a provider of telecommunications
   service prior to obtaining:

   (i) Authorization from the subscriber, and

   (ii) Verification of that authorization in accordance with the procedures
   prescribed  in this section. The submitting carrier shall maintain and
   preserve records of verification of subscriber authorization for a minimum
   period of two years after obtaining such verification.

   (2) An executing carrier shall not verify the submission of a change in a
   subscriber's selection of a provider of telecommunications service received
   from a submitting carrier. For an executing carrier, compliance with the
   procedures described in this part shall be defined as prompt execution,
   without any unreasonable delay, of changes that have been verified by a
   submitting carrier.

   (3) Commercial mobile radio services (CMRS) providers shall be excluded from
   the verification requirements of this part as long as they are not required
   to provide equal access to common carriers for the provision of telephone
   toll services, in accordance with 47 U.S.C. 332(c)(8).

   (b) Where a telecommunications carrier is selling more than one type of
   telecommunications service (e.g., local exchange, intraLATA/intrastate toll,
   interLATA/interstate toll, and international toll) that carrier must obtain
   separate authorization from the subscriber for each service sold, although
   the  authorizations  may  be  made  within the same solicitation. Each
   authorization must be verified separately from any other authorizations
   obtained in the same solicitation. Each authorization must be verified in
   accordance with the verification procedures prescribed in this part.

   (c) No telecommunications carrier shall submit a preferred carrier change
   order unless and until the order has been confirmed in accordance with one
   of the following procedures:

   (1) The telecommunications carrier has obtained the subscriber's written or
   electronically signed authorization in a form that meets the requirements of
    Sec. 64.1130; or

   (2) The telecommunications carrier has obtained the subscriber's electronic
   authorization  to  submit  the  preferred  carrier  change order. Such
   authorization must be placed from the telephone number(s) on which the
   preferred carrier is to be changed and must confirm the information in
   paragraph (a)(1) of this section. Telecommunications carriers electing to
   confirm sales electronically shall establish one or more toll-free telephone
   numbers exclusively for that purpose. Calls to the number(s) will connect a
   subscriber to a voice response unit, or similar mechanism, that records the
   required information regarding the preferred carrier change, including
   automatically recording the originating automatic number identification; or

   (3) An appropriately qualified independent third party has obtained, in
   accordance with the procedures set forth in paragraphs (c)3)(i) through
   (c)(3)(iv) of this section, the subscriber's oral authorization to submit
   the preferred carrier change order that confirms and includes appropriate
   verification data (e.g., the subscriber's date of birth or social security
   number). The independent third party must not be owned, managed, controlled,
   or directed by the carrier or the carrier's marketing agent; must not have
   any financial incentive to confirm preferred carrier change orders for the
   carrier or the carrier's marketing agent; and must operate in a location
   physically separate from the carrier or the carrier's marketing agent.

   (i) Methods of third party verification. Automated third party verification
   systems and three-way conference calls may be used for verification purposes
   so long as the requirements of paragraphs (c)(3)(ii) through (c)(3)(iv) of
   this section are satisfied.

   (ii)  Carrier  initiation  of third party verification. A carrier or a
   carrier's sales representative initiating a three-way conference call or a
   call through an automated verification system must drop off the call once
   the three-way connection has been established.

   (iii) Requirements for content and format of third party verification. All
   third party verification methods shall elicit, at a minimum, the identity of
   the subscriber; confirmation that the person on the call is authorized to
   make the carrier change; confirmation that the person on the call wants to
   make the carrier change; the names of the carriers affected by the change
   (not including the name of the displaced carrier); the telephone numbers to
   be switched; and the types of service involved. Third party verifiers may
   not market the carrier's services by providing additional information,
   including information regarding preferred carrier freeze procedures.

   (iv)  Other requirements for third party verification. All third party
   verifications shall be conducted in the same language that was used in the
   underlying sales transaction and shall be recorded in their entirety. In
   accordance with the procedures set forth in 64.1120(a)(1)(ii), submitting
   carriers  shall maintain and preserve audio records of verification of
   subscriber authorization for a minimum period of two years after obtaining
   such verification. Automated systems must provide consumers with an option
   to speak with a live person at any time during the call.

   (4) Any State-enacted verification procedures applicable to intrastate
   preferred carrier change orders only.

   (d) Telecommunications carriers must provide subscribers the option of using
   one  of  the  authorization  and  verification procedures specified in
    Sec. 64.1120(c)  in addition to an electronically signed authorization and
   verification procedure under 64.1120(c)(1).

   (e) A telecommunications carrier may acquire, through a sale or transfer,
   either part or all of another telecommunica- tions carrier's subscriber base
   without  obtaining each subscriber's authorization and verification in
   accordance with  Sec. 64.1120(c), provided that the acquiring carrier complies
   with the following streamlined procedures. A telecommunications carrier may
   not use these streamlined procedures for any fraudulent purpose, including
   any attempt to avoid liability for violations under part 64, subpart K of
   the Commission rules.

   (1)  No later than 30 days before the planned transfer of the affected
   subscribers  from the selling or transferring carrier to the acquiring
   carrier, the acquiring carrier shall file with the Commission's Office of
   the Secretary a letter notification in CC Docket No. 00–257 providing the
   names of the parties to the transaction, the types of telecommunications
   services to be provided to the affected subscribers, and the date of the
   transfer of the subscriber base to the acquiring carrier. In the letter
   notification, the acquiring carrier also shall certify compliance with the
   requirement  to  provide  advance subscriber notice in accordance with
    Sec. 64.1120(e)(3), with the obligations specified in that notice, and with
   other statutory and Commission requirements that apply to this streamlined
   process. In addition, the acquiring carrier shall attach a copy of the
   notice sent to the affected subscribers.

   (2)  If,  subsequent to the filing of the letter notification with the
   Commission required by  Sec. 64.1120(e)(1), any material changes to the required
   information  should  develop, the acquiring carrier shall file written
   notification of these changes with the Commission no more than 10 days after
   the  transfer date announced in the prior notification. The Commission
   reserves the right to require the acquiring carrier to send an additional
   notice to the affected subscribers regarding such material changes.

   (3) Not later than 30 days before the transfer of the affected subscribers
   from the selling or transferring carrier to the acquiring carrier, the
   acquiring carrier shall provide written notice to each affected subscriber
   of the information specified. The acquiring carrier is required to fulfill
   the obligations set forth in the advance subscriber notice. The advance
   subscriber notice shall be provided in a manner consistent with 47 U.S.C.
   255  and  the  Commission's rules regarding accessibility to blind and
   visually-impaired consumers, 47 CFR 6.3, 6.5 of this chapter. The following
   information must be included in the advance subscriber notice:

   (i) The date on which the acquiring carrier will become the subscriber's new
   provider of telecommunications service,

   (ii) The rates, terms, and conditions of the service(s) to be provided by
   the  acquiring carrier upon the subscriber's transfer to the acquiring
   carrier,  and the means by which the acquiring carrier will notify the
   subscriber of any change(s) to these rates, terms, and conditions.

   (iii) The acquiring carrier will be responsible for any carrier change
   charges associated with the transfer, except where the carrier is acquiring
   customers by default, other than through bankruptcy, and state law requires
   the exiting carrier to pay these costs;

   (iv) The subscriber's right to select a different preferred carrier for the
   telecommunications  service(s)  at issue, if an alternative carrier is
   available,

   (v) All subscribers receiving the notice, even those who have arranged
   preferred carrier freezes through their local service providers on the
   service(s) involved in the transfer, will be transferred to the acquiring
   carrier, unless they have selected a different carrier before the transfer
   date; existing preferred carrier freezes on the service(s) involved in the
   transfer  will be lifted; and the subscribers must contact their local
   service providers to arrange a new freeze.

   (vi) Whether the acquiring carrier will be responsible for handling any
   complaints filed, or otherwise raised, prior to or during the transfer
   against the selling or transferring carrier, and

   (vii) The toll-free customer service telephone number of the acquiring
   carrier.

   [ 65 FR 47691 , Aug. 3, 2000, as amended at  66 FR 12892 , Mar. 1, 2001;  66 FR 28124 , May 22, 2001;  68 FR 19159 , Apr. 18, 2003;  70 FR 12611 , Mar. 15, 2005]