|Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
|News media information 202 / 418-0500
This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
FCC PROPOSES TO FINE SBC COMMUNICATIONS, INC. $2.52 MILLION
Washington, D.C. - Based on procedures defined in the Communications Act of 1934, as
amended, the Federal Communications Commission today released a Notice of Apparent
Liability and Order ("Notice") proposing that SBC Communications, Inc. ("SBC") be held liable
for a $2.52 million fine. Today's action follows an Enforcement Bureau investigation into
SBC's filing of inaccurate information in the Kansas/Oklahoma section 271 proceeding. SBC is
permitted 30 days either to pay the proposed fine or to respond in writing. Should SBC submit a
written response, the Commission will consider the response and then proceed to issue final
On December 11, 2000, while seeking to gain approval to offer interstate long distance service to customers in Kansas and Oklahoma, SBC submitted to the Commission three affidavits containing inaccurate information concerning the operation of SBC's loop qualification system. After the Commission approved SBC's Kansas/Oklahoma application, SBC informally advised Commission staff that the affidavits might contain inaccurate information. The Enforcement Bureau then initiated an investigation into the relevant circumstances.
In today's Notice, the Commission first determined that, although SBC was negligent in collecting the information on which it relied in submitting these inaccurate affidavits, the record does not support a finding that SBC intentionally misrepresented information to the Commission. The Commission also found that SBC's loop qualification system, as it operated when the Commission approved the Kansas/Oklahoma application, did not violate section 271 of the Communications Act.
Based on its investigation, however, the Commission did find that SBC appears to be liable for other apparent violations. Specifically, the Commission found that:
The Commission also directs SBC to submit reports regarding future compliance with section 1.65 of the Commission's Rules and the 1999 Consent Decree.
Action by the Commission, October 16, 2001, Notice of Apparent Liability and Order (FCC 01-308).
Enforcement Bureau Contact: John R. Winston 202-418-7450