Path: utzoo!telecom-request Date: Sun, 5 May 91 17:22 PDT From: John Higdon Newsgroups: comp.dcom.telecom Subject: Re: MCI Suspends New 900 Applications Reply-To: John Higdon Message-ID: Organization: Green Hills and Cows Sender: Telecom@eecs.nwu.edu Approved: Telecom@eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu X-Telecom-Digest: Volume 11, Issue 336, Message 1 of 11 Lines: 39 John Boteler writes: > MCI dropped the shoe yesterday by announcing that it was suspending > all new orders for 900 service due to "eight figure losses" in that > department. This is the opposite of the way Telesphere (who recently called it quits completely, advising its long distance customers to select another provider) handled its 900 service. First, it required information providers to post an "uncollectables" bond that was handy for use as capital for Telesphere's general use. Then when it needed more money, it simply withheld payment to the providers, claiming that it suffered heavy collection difficulties on that account. When the providers (Telesphere's customers) got together, they discovered everyone seemed to have "collection difficulties" at the same time or particularly when call counts were high. Many providers, expecting a big monthly check because of high volume, were given the bad news by Telesphere that not only would they not be getting any money for the month, but that an additional deposit would be required. Since Telesphere provided no ANI nor any accounting detail whatsoever, the providers had to take Telesphere's word for it. Eventually, information providers wised up and there are now many lawsuits against the long distance company. Some providers have even been paid off to get them to drop an action or to refrain from filing one. Sprint and AT&T provide ANI data to the provider so that if there is collection difficulty, the provider can take matters into his own hands. Also, he can keep track of who calls and how much and make sure that no individual caller runs up a major bill that would be unpaid due to claimed hardship. For this reason, neither Sprint nor AT&T will likely have the problems that MCI or Telesphere claim. John Higdon | P. O. Box 7648 | +1 408 723 1395 john@zygot.ati.com | San Jose, CA 95150 | M o o !