FOR IMMEDIATE RELEASE April 17, 2003

NEWS MEDIA CONTACT: John Winston (202) 418-7450

Washington, D.C. - Today the Federal Communications Commission granted in part a complaint brought by Core Communications, Inc. and Z-Tel Communications, Inc. against SBC Communications, Inc. and its nine incumbent local exchange affiliates. Core and Z-Tel alleged that SBC had violated conditions imposed by the FCC in the SBC/Ameritech Merger Order and section 251 of the Communications Act by refusing to allow Core and Z-Tel to use the shared transport unbundled network element to transport intraLATA toll calls.

The Commission found that SBC did violate the SBC/Ameritech Merger Order, referencing its October 9, 2002 Forfeiture Order imposing a $6 million forfeiture on SBC for violation of the same requirement. Core and Z-Tel may now file a supplemental complaint for damages caused by SBC's violations.

With respect to the section 251 claims, the Commission rejected SBC's argument that disputes arising from the local competition provisions of the Communications Act must be resolved only through state processes. The Commission ruled that it had jurisdiction to resolve Core and Z-Tel's claims. Based on the facts of this case, the Commission ruled in favor of SBC on the merits of the section 251 claims.

Action by the Commission, April 10, 2003, by Memorandum Opinion and Order (FCC 03-83). Chairman Powell, Commissioners Copps, Martin, and Adelstein, with Commissioner Abernathy issuing a separate statement.

Enforcement Bureau contact: John R. Winston or Suzanne Tetreault at (202) 418-7450.