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- Order (FCC 99-153)
- Consent Decree
- SBC Compliance Plan

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Federal Communications Commission
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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).

JUNE 28, 1999

Emily Hoffnar 202/418-0253

FCC Releases Consent Decree

In a Consent Decree released today, the Commission terminated an informal investigation into potential violations by SBC Communications, Inc. (SBC) in the context of its merger with Southern New England Telecommunications Corporation (SNET). Under the terms of today's Consent Decree, SBC has agreed to make several important changes regarding its internal operations to ensure compliance with statutory and regulatory provisions. In addition, SBC agreed to make a voluntary payment of $1.3 million to the U.S. Treasury. SBC did not admit any wrongdoing in this proceeding.

Today's Consent Decree is the product of an approximately six month investigation that concerned issues surrounding SBC/SNET's provision of long distance information services arising from the merger. Specifically, the Consent Decree terminates the Commission's investigation concerning: 1) potential violations of certain sections of the Communications Act dealing with the terms under which the Bell Companies may provide long distance service (i.e., sections 271 and 272); 2) potential violations of a Commission rule that requires FCC license applicants to notify the Commission of changes in information provided during a license application proceeding (i.e., 47 C.F.R. 1.65); and 3) possibly inaccurate statements made to the Commission by SBC employees.

In addition to SBC's $1.3 million payment, highlights of the Consent Decree include the following:

  • SBC's adoption of a comprehensive compliance plan designed to ensure future compliance with sections 271 and 272 in the context of mergers; and

  • SBC's creation of a training program on the obligations of SBC employees when they are meeting with the FCC.
The Consent Decree notes that the Commission also considered the following criteria in reaching its determination:
  • SBC's history of compliance;

  • SBC's cooperation in the Commission's investigation; and

  • the submission of declarations by senior SBC corporate officers stating that they did not have knowledge of the conduct of SBC employees that formed the subject of the Commission's investigation.
COMMON CARRIER BUREAU CONTACT:      Jeffrey Dygert 202/418-7300

Report No: 99-21

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