Customer Care, Telesales Enhancements Exceed FCC
Rules
Clinton, MS, June 6, 2000 -- WorldCom today entered into an
agreement with the FCC to resolve a Commission inquiry into consumer
complaints regarding alleged unauthorized changes of long distance
carriers. The agreement embodies a comprehensive consumer protection
program implemented by WorldCom last year to enhance and strengthen its
telesales and customer service operations.
Under the agreement, which is in-line with the ongoing FCC-led
effort to combat slamming across the entire industry, WorldCom will
enhance its consumer protection practices while more than conforming
with recently adopted FCC slamming dispute resolution rules. The
agreement includes a voluntary cash payment of $3.5 million by WorldCom
to the U.S. Treasury.
"WorldCom condemns unauthorized carrier switches, and we
cooperated fully with the FCC's review," said WorldCom
president and chief executive officer Bernard J. Ebbers. "The
incidents highlighted by the FCC were perpetrated by a few sales
employees, who have since been terminated. Our zero tolerance policy
for slamming is very real, and we will take whatever steps necessary to
prevent slamming from occurring."
"The commitments made in our agreement with the FCC -- to
enhance customer service and quality and strengthen our verification
procedures - reach beyond the FCC's inquiry. We want consumers to
know that we value their business and their trust. As a result of this
process, and a careful review of all relevant policies and procedures,
our sales force is now even better trained and held to even higher
standards of professional conduct," said Ebbers.
As part of the company program to address customer service and
telesales issues, WorldCom recently created a Consumer Affairs and
Quality Organization. This new team, which represents a significant
commitment by WorldCom, has already implemented a number of customer
service enhancements and protections that address concerns raised by
the FCC.
"The Consumer Affairs and Quality Organization is a
comprehensive, industry-leading quality control program that begins
with the company's most senior executives and extends to every
employee in WorldCom's telesales and customer service
workforce," Ebbers said.
The 200-person organization will link directly to the executive
office of the president of WorldCom Mass Markets, Wayne Huyard, and
will be overseen by an executive council consisting of Huyard; Michael
Salsbury, WorldCom general counsel; and Scott Sullivan, the
company's chief financial officer.
Sally McMahon, vice president of consumer affairs and quality and a
21-year veteran of WorldCom will be responsible for implementing
reforms and managing the program on a day-to-day basis. The
organization will maintain an ongoing dialogue with federal and state
regulators and with customers to ensure that customer service and
company integrity are never compromised.
"In a highly competitive market like ours, dissatisfied
customers have a wide variety of other carriers from which to
choose," said Huyard. "We are committing significant
resources to this effort, to ensure not only that our sales are valid
but also that our customers receive the quality, professional service
they deserve every time they contact WorldCom."
WorldCom worked closely with the FCC both during its inquiry and in
the development of the company's new customer care program in an
effort to conform with the FCC's industry-wide slamming reforms.
The agreement includes the following elements:
- Establishes a mandatory code of conduct that sets an even higher
quality standard for its telesales representatives. The code will be
reviewed and signed annually by all telesales representatives; - Creates performance incentives that foster consumer protection by
rewarding sales representatives based on the quality of their sales,
and employing financial disincentives, for representatives and
managers, for inappropriate sales conduct; - Provides for the immediate termination of any sales
representative who intentionally deceives a customer, and establishes
a system for discipline -- including monitoring, financial
disincentives, and termination - for violations of the code of
conduct; - Upgrades Third-Party Verification (TPV) systems and provides for
an internal verification system. The TPV process will now require
that customers authorizing line changes confirm more specific
information about the line change. WorldCom will audit and verify
residential and business line changes for a period of 90 days. The
company will institute 'spot-check' audits and verifications
following that period, and will monitor all sales made by
representatives who have had certain complaints lodged against
them; - Creates a more efficient crediting system for customers. The
system will speed the processing, accuracy, and resolution of
customer inquiries and will reduce hold times for customer service.
It will enable customers who claim to have received an unauthorized
service change to receive billing rates equal to their prior
carrier's rate, and to be reimbursed for any change fees.
WorldCom (NASDAQ: WCOM) is a global leader in
"all-distance" communications services with operations in
more than 65 countries. Revenues in 1999 were $37 billion, with more
than $15 billion from high-growth data, Internet and international
services. WorldCom and Sprint have announced a merger agreement, which
the companies expect to close in the second half of 2000 after
regulatory approvals. For more information go to
http://www.wcom.com.
