FOR IMMEDIATE RELEASE January 18, 2002

NEWS MEDIA CONTACT: John Winston (202) 418-7450 Jwinston@fcc.gov

Washington, D.C. - The Federal Communications Commission today released a Notice of Apparent Liability (Notice) proposing that SBC Communications, Inc. (SBC) be held liable for a fine of $6 million. Today's action follows an investigation into SBC's compliance with a competition-related condition imposed by the FCC in approving certain license transfers in connection with the 1999 merger of SBC and Ameritech Corporation.

In approving the license transfers, the Commission required SBC to offer the shared transport unbundled network element in the former Ameritech states on terms at least as favorable as those offered to telecommunications carriers in Texas as of August 27, 1999. In today's Notice, the Commission found that SBC appears to have violated this condition in each of the five former Ameritech states by attempting to restrict the use of shared transport by carriers providing intraLATA toll service. The $6 million fine proposed by the Commission is the statutory maximum for the five apparent violations (one in each of the former Ameritech states).

In accordance with procedures established by the Communications Act of 1934, as amended, and the Commission's rules, SBC has 30 days to either pay the proposed fine or to respond in writing. Should SBC submit a written response, the Commission will consider that response and then proceed to issue a final ruling.

Action by the Commission, January 16, 2002, Notice of Apparent Liability (FCC 02-7).

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