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VeriSign sells XO on DNC compliance

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It has been quite a while since the industry had a worthy new intelligent network service. But at least three carriers, including XO Communications this week, have signed with VeriSign and its partner Call Compliance to use their SS7-based TeleBlock service to help their call center customers comply with new mandates.

TeleBlock is based on patented technology from Glen Cove, NY-based Call Compliance. It runs as a service bureau service on VeriSign’s SS7 network and lets service provides access federal and state Do-Not-Call (DNC) lists without requiring new connectivity by VeriSign’s carrier customers.

Although the Federal Trade Commission launched its national DNC registry last month (administered by AT&T’s government solutions group), as many as 24 states have not said they plan to dismantle their state-run registries, according to Joe Sanscrainte, director of regulatory affairs/general counsel with Call Compliance.

“Telemarketers may be looking at the worst of all possible worlds and have to comply not only at the state level, but at the federal level as well,” he said. “This means they would have to purchase, register and comply with all their lists.”

Despite the potential loss in revenue caused by a decline in outbound telemarketing calls, carriers see compliance as an opportunity to generate revenue, said Carl Bergstrom, director of product management for IN services at VeriSign.

They same holds true for VeriSign. “It remains to be seen if the volume of telemarketing traffic declines substantially or only to a small degree with the advent of the federal list,” Bergstrom said, “But even with a slight decline in telemarketing traffic the need for compliance will be here for years to come.”

Like number portability, DNC is a service tailor made for the service bureau model. “We are the only SS7-based solution out there today,” Bergstrom said. “Other competing technologies do basic list scrubbing or trunk calls directly to a platform. Ours uses the existing call path and doesn’t require special trunking or require telemarketers to dial a special number.”

VeriSign’s TeleBlock platform currently has more than 20 million state phone numbers and access to the 25 million (and counting) numbers already registered in the national database scheduled to go live October 1.

Telemarketers not complying with requirements by October 1 can be penalized up to $25,000 per infraction depending on their location. The Federal Trade Commission has proposed revisions to the Telemarketing Sales Rule of 1994, which would result in an $11,000.00 fine per violation. Consumers also have the authority to bring a civil action against the violating party and potentially recover civil penalties.

As part of a coordinated effort to soften rules, the American TeleServices Association, a trade group representing telemarketers filed a petition this week seeking judicial review of the regulations. The group filed with the U.S. Court of Appeals for the Tenth Circuit, asks for review of the FCC’s order on the DNC registry and asked for a stay to forestall enforcement saying the rules violate the U.S. Constitution.

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