5. The Settlement Agreement

As part of the Commission's voluntary ADR program, the Settling Parties participated in two days of mediation on October 26-27, 2010 with a neutral ALJ and reached a resolution of the matter. The Settlement Agreement is an all-party settlement and represents a compromise of the litigation positions of the Settling Parties.²⁹ It does not represent agreement or endorsement of disputed facts or law, nor constitute any precedent in this or future proceeding. No protest or comment was filed in response to the Joint Motion.

The Settling Parties agreed that Americatel would make numerous operational improvements. The operational improvements are in the following areas: (1) procedures for marketing and new customers; (2) customer service; (3) pre-screening of marketing vendors; (4) billing procedures; and (5) use of Letters of Authorization. The operational improvements are set forth in more detail in Attachment A, to the Settlement Agreement attached to this decision. They include a dedicated customer service toll-free number with bi-lingual representatives, improved employee training, and improved pre-screening of marketing vendors.

In addition, Americatel must make a settlement payment to the State of California General Fund in the amount of $503,000. The settlement amount shall be paid as set forth in the Settlement Agreement within 30 days of the issuance of a final non-appealable decision by the Commission approving the Settlement Agreement without material change.³⁰

²⁹ Joint Motion at 3.

³⁰ Paragraph 13 of the Settlement Agreement provides that Americatel shall pay $43,000 within 30 days after the effective date of the Settlement, i.e., the date of the Commission's approval of the Settlement Agreement. Thererafter, Americatel shall make monthly payments in the amount of $20,000 each for the following 23 months, resulting in a total payment of $503,000.