I. INTRODUCTION

By this Order, the Commission institutes an investigation to determine whether Americatel Corporation (Americatel) (U-5918-C), or its agents, have violated Public Utilities Code Section 2890 or any Commission rule, regulation, order, requirement or state law, by billing consumers for dial-around long distance monthly service without the consumers' authorization and by applying incorrect rates on customers' phone bills, resulting in overcharges of approximately $3.5 million in total. We direct Americatel to show cause why we should not impose penalties and other sanctions as a result of the apparent violations in this case.