Minimum Rate Pricing
From Wikipedia, the free encyclopedia
 |
This article does not cite any references or sources. (April 2008) Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. |
 |
This article or section needs copy editing for grammar, style, cohesion, tone or spelling. You can assist by editing it now. A how-to guide is available. (April 2008) |
Minimum Rate Pricing, Inc. (MRP) was a Long Distance Telecommunications Carrier based out of Cedar Grove New Jersey, which became the number 7 Long Distance Carrier in America in 4 years from its start upwith over 1.9 million long distance customers in 1998. Because of its incredible growth, the to stem the tide of residential and small businesses unauthorized changes in log distanec carriers which became known as "slamming" of the use telecommunications services.
Under a consent decree agreement with the Federal Communications Commission FCC, MRP agreed to voluntarily pay $1.2 million dollars to the FCC in a settlementwithout any admission of liability of disputed claims which would have been expensive for the company to litigate. In point of fact, MRP had 300 such complaints on file with the FCC among its 1,900,000 customers - a ratio of .000158. The other carriers in the FCC Sweep of the Industry paid $10 Million to $30 Million each to settle the same FCC slamming-related allegations without any admnission of wrong doing. However, their complaint to customer ratios of .000361 to .000643 were literally 3 to 4 times that of MRP's. Additionally, each carrier detailed measures it would agree to protect consumers against having their long distance carrier changed without their consent, in the future.
Although MRP was also accused of "slamming" customers (as have numerous long distance companies, including AT&T) the most novel aspect of MRP's telecommunications offering was its provision to prospective customers of rates that were in point of fact 25% off the Carrier Rack or Retail Rates of AT&T MCI or Sprint - the domionant players iof the day. Compared to AT&T, MCI, and Sprint, basic rates, MRP provided a "minimum" rate substantially cheaper than these three long distance companies.
MRP subsequently eliminated its switch-back provisions, but the Bureau continued its investigation into other slamming-related issues concerning MRP's business and marketing practices. Today's Consent Decree culminates the FCC's investigation. MRP, whose principal place of business is Bloomfield, New Jersey, did not admit any wrongdoing in this proceeding.
MRP and it's parent company NTC were three times named to the INC 500 Fastest Growing Companies in America and were recognized two times by then Governor of New Jersey Whitman as one of the top employers of Minorities and Ex-Welfare Recipients in the States' "Welfare to Work Program". The Company also sponsored 165 Orphans Monthly during its 4 year existence.
