Factual Background

The parties stipulated to the following facts:

1. Prior to about October 23, 2000, Complainant subscribed to AT&T's long distance service and One-Rate Calling Card Plan.

2. On or about October 23, 2000, Complainant changed his long distance presubscription from AT&T to another carrier.

3. The tariffed rates for AT&T's One-Rate Calling Card Plan at the time Complainant changed presubscription were a $1.00 per month recurring charge, usage at $0.25 per minute, plus applicable taxes and surcharges.

4. AT&T discontinued Complainant's enrollment in the One-Rate Calling Card Plan as of October 23, 2000, upon notification by Pacific Bell to AT&T of Complainant's change in presubscription.

5. The standard tariffed rates for intrastate calls at the time Complainant changed presubscription were $0.69 per minute, a $1.25 set-up charge per call, plus applicable taxes and surcharges.

6. Complainant did not notify or contact AT&T, on or about October 23, 2000, regarding his change in presubscribed long distance carrier or his intentions regarding his calling card and his enrollment in the One-Rate Plan.

7. On or about August 31, 2001, Complainant spoke with a customer service representative and received a $70 credit.

The record also reflects that Complainant established a direct-billed account for the One-Rate Plan when he realized that AT&T had changed his calling card rates. For One-Rate calling card customers who change long distance carriers and continue to use their calling card, AT&T's policy since August 2001 has been to notify the customers of their options on their first bill after that calling card usage. A negligible number of customers who retain their AT&T calling card after changing from AT&T long distance select the One-Rate-Plan. Almost all customers who retain the calling card choose to pay standard tariffed rates.¹