FOR IMMEDIATE RELEASE September 8, 2003

NEWS MEDIA CONTACT: Suzanne Tetreault (202) 418-7450

Washington, D.C. - Today the Commission released a Notice of Apparent Liability for Forfeiture proposing that Verizon be held liable for a $283,800 forfeiture for apparently violating the Commission's affiliate transactions rules. The conduct at issue relates to Verizon's accounting treatment of transactions between its New York Bell Operating Company (``BOC'') and its New York long distance affiliates.

This is the first case in which the Commission has proposed a monetary forfeiture arising from a section 272(d) biennial audit. Under section 272(d) of the Communications Act, BOCs are required to obtain a biennial audit of their compliance with the requirements that BOCs remain structurally separate from their long distance affiliates and that all transactions be on an arm's length basis. Verizon's first section 272(d) audit, which covered its long distance operations in New York, revealed that in numerous instances Verizon apparently did not comply with those requirements. The proposed forfeiture is based on these audit results.

Action by the Commission on August 6, 2003, by Notice of Apparent Liability for Forfeiture (FCC 03-199). Chairman Powell, Commissioners Abernathy and Martin. Commissioners Copps and Adelstein concurring and issuing a separate statement.

Enforcement Bureau Contacts: Suzanne Tetreault at 202-418-7450 or Mark Stone at (202) 418-0816

TTY: 1 (888) 835-5322