The Settlement

Under the terms of the Settlement Agreement,⁴ MCI acknowledges that between June 2006 and October 2006, Jack Duclo and other California customers were erroneously charged a basic monthly fee and related taxes, fees and surcharges. The parties further acknowledge that since then, MCI engaged in a credit recovery and fully credited all affected customers. Additionally, both parties acknowledge that to prevent the recurrence of the issues raised by UCAN in this proceeding, MCI has undertaken the following actions:

· MCI has modified its billing system to alert users to add the hard code logic before changing the Basic Monthly Fee;

· MCI has implemented a new policy whereby a customer complaint will enter the escalation process when there are multiple credits issued to a customer on what appears to be the same issue. It has also implemented training to inform the CSRs about this new policy; and

· MCI has added a bullet to the "pop-up" that appears as part of the computer-based crediting procedures to remind CSRs to apply a companion credit when applicable, and has included the "pop-ups" in its CSR training.

Pursuant to the Settlement Agreement, MCI has also agreed to make the following operational improvements in its business practices:

· MCI will provide a contact person for UCAN to approach if there are future problems. UCAN agrees to try to contact this individual to endeavor to resolve any concerns before filing any legal actions against MCI.

· Unrelated to this proceeding, MCI is in the process of reviewing and consolidating its billing systems to create a more unified and automated system for each jurisdiction.

· Between 90 and 180 days after completion of the review and consolidation of the billing systems, MCI will provide UCAN with a random sample of 12 long-distance standalone accounts that were issued corrective credits through a CSR, including the internal details showing how MCI credited all fees, taxes and surcharges.

· MCI intends for the above changes to internally allow it to see a line-by-line review of the associated fees, taxes and surcharges calculated for the credit amount. However, UCAN acknowledges that because these efforts are still in the developmental stage no guarantees can be made by MCI about the capabilities of the system.

⁴ The settlement is attached as Appendix A to this decision.