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Electrical engineering

slam

To move a customer from one service provider to another without their consent.

slam: unauthorized carrier switch in telecom

In telecommunications, to slam means to switch a customer's long-distance carrier, local exchange carrier, or other service provider without their explicit written authorization. The customer receives a bill from a new provider and discovers their service has been changed without their knowledge or request. This practice became widespread in the 1990s after telecom deregulation opened markets to competition, and it prompted regulatory intervention by the Federal Communications Commission and state authorities.

Slamming typically occurs through deceptive sales tactics. A third-party marketer calls a customer, misrepresents their company affiliation, or obtains verbal "consent" under false pretenses, then submits a Letter of Agency (LOA) to the new carrier claiming authorization to switch. The customer only learns of the switch when their next bill arrives showing charges from an unfamiliar provider. Some slams are accidental, caused by carrier processing errors, but most involve deliberate deception to capture market share.

Regulatory Response and Protection

The FCC established rules under which carriers must obtain signed, written authorization specific to the switch request before processing any carrier change. Customers who have been slammed are entitled to immediate restoration of their original service at no charge, plus refunds of disputed charges and any applicable credits. Carriers who slam customers face penalties, and repeat violators can lose authorization to change customers entirely.

Unlike legitimate switching, which a customer initiates, slamming is involuntary and fraudulent. The term itself derives from the forceful, sudden nature of the unauthorized action. In the years following telecom deregulation, slamming became a significant consumer protection issue because the barrier to entry in long-distance and local service was low and competition was fierce, creating economic incentive for unethical carriers to build customer bases quickly through deception rather than service quality.

Sources

Entry IG7324

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