SBC Communications, Inc., Apparent Liability for Forfeiture, Forfeiture Order, (2002). News Release | Statement
In this Forfeiture Order ("Order"), we find that SBC Communications, Inc. ("SBC") willfully and repeatedly violated one of the conditions that the Commission imposed in its order approving the merger application of Ameritech Corp. ("Ameritech") and SBC. Specifically, SBC failed to offer shared transport in the former Ameritech states under terms and conditions substantially similar to those that it offered in Texas as of August 27, 1999, in violation of the SBC/Ameritech Merger Order. Based upon our review of the facts and circumstances before us and after considering SBC's response to the Commission's Notice of Apparent Liability ("NAL") in this matter, we conclude that SBC is liable for a forfeiture of six million dollars ($6,000,000.00), the amount we proposed in the NAL
SBC Communications, Inc., Apparent Liability for Forfeiture, Notice of Apparent Liability for Forfeiture, 17 FCC Rcd 1397 (2002) ("NAL").
On Jan 9, 2001, The D.C. Circuit Court of Appeals vacated in part the FCC's approval of the merge of SBC and Ameritech. At issue is whether the Advanced Services Separate Subsidiary that was formed as a result of the merger is under the same regulations as SBC itself. The FCC had concluded that the Advanced Services Separate Subsidiary was not a successor or assign of the ILEC and therefore was not under Sec. 251 obligations. The Court concluded that it was "unreasonable" for the FCC to conclude that the wholly owned Advanced Services Separate Subsidiary was not a successor or assign and that the FCC's finding was directly contradictory to the Telecommunication Act itself.
It has been unclear the importance of the FCC Merger Order on SBC and the Computer Inquires. It has been argued that the logic of the FCC's Order was that the Advanced Service Separate Subsidiary was not the ILEC and therefore not under the same rules as the ILEC. For ISPs, this could mean that the Separate Subsidiary was not under the obligations of the Computer Inquiries as a BOC since it is not the BOC. But nowhere in the merger order were the Computer Inquires considered. The proceeding dealt with Sec. 251, not the Computer Inquiries. It is hard to understand how the Order could undo a set of rules that it did not even consider.
Even if were true that, under the Merger Order, the separate subsidiary was not under the Computer Inquiries as a BOC, the D.C. Circuit Court case undoes that result. According to the Court, the ILEC, and every part of the ILEC, is under the obligations of the ILEC. Thus, the BOC, and every part of the BOC, is under the Computer Inquiry obligations.
"On October 6, 1999, the Commission approved, subject to conditions, the transfer of control of certain licenses and authorizations from Ameritech Corporation to SBC Communications ("SBC").(1) Pursuant to the Merger Conditions, SBC must establish one or more separate affiliates to provide advanced services, including Digital Subscriber Line ("DSL") advanced services.(2) SBC's Advanced Services Affiliate must, among other things, own (or lease) and operate all new advanced services equipment used to provide advanced services.(3)
"On February 15, 2000, SBC filed a letter with the Chief of the Common Carrier Bureau ("Bureau") seeking the Bureau's interpretation regarding an ownership arrangement of certain advanced services equipment.(4) Specifically, SBC seeks the Bureau's concurrence that its proposed ownership arrangement is consistent with the Merger Conditions. In the event the Bureau finds SBC's proposed ownership arrangement inconsistent with the Merger Conditions, SBC seeks a waiver of the applicable requirements or a modification of the conditions to allow the proposed operating environment.
"Through this public notice, the Bureau seeks comment on SBC's request. We invite parties to present their views on all aspects of SBC's February 15th Letter, which is attached in its entirety to this notice. " Public Notice
SBC ADVANCED SOLUTIONS, INC. PETITION FOR INTERIM WAIVER OF SECTION 61.38, 61.58 AND 61.59 OF THE COMMISSION'S RULES. Granted SBC- ASI's Request to Withdraw its Petition for Waiver of Sections 61.58 and 61.59 of the Commission's rules, and terminated the proceeding initiated by the Petition. Action by: Deena Shetler. Adopted: 05/13/2003 by ORDER. (DA No. 03-1585). WCB, FCC 5/14/03
SBC ADVANCED SOLUTIONS, INC. PETITION FOR INTERIM WAIVER TO FILE CONTRACT TARIFFS FOR ADVANCED SERVICES. Granted SBC-ASI's Request to Withdraw its Petition for Waiver of the Commission's rules, and terminated the proceeding initiated by the Petition. Action by: Deputy Division Chief, Pricing Policy Division, Wireline Competition Bureau. Adopted: 05/13/2003 by ORDER. (DA No. 03- 1584). WCB, FCC 5/14/03
Applications of Ameritech Corp., Transferor, and SBC Communications, Inc., Transferee, For Consent to Transfer Control of Corporations Holding Commission Licenses and Lines Pursuant to Sections 214 and 310(d) of the Communications Act and Parts 5, 22, 24, 25, 63, 90, 95, and 101 of the Commission's Rules, Memorandum Opinion and Order, 14 FCC Rcd 14712 (1999), reversed in part, Association of Communications Enterprises v. FCC, 235 F.3d 662 (D.C. Cir. 2001).
99-1441a Assn Comm Ent vs. FCC Released: 01/09/2001
99-1441b Assn Comm Ent vs. FCC Released: 01/26/2001
99-1441c Assn Comm Ent vs. FCC Released: 01/26/2001
FCC Contacts are Janice Myles. and Anthony Dale 2260
Daily Digest SBC COMMUNICATIONS, INC. Granted request for extension of time to Mar. 31 to respond to the development of enhancements to advanced services operational support systems required under the SBC/Ameritech Merger Order. Action by Deputy Chief, Common Carrier Bureau. Adopted: March 10, 2000. by Letter. (DA No. 00-562). CCB
SBC COMMUNICATIONS, INC. Granted extension of time to April 10, for completion date for Phase I development of uniform and enhanced operational support systems required under the SBC/Ameritech Merger Order. Action by Deputy Chief, Common Carrier Bureau. Adopted: March 10, 2000. by Letter. (DA No. 00-554). CCB
Released: February 18, 2000. COMMON CARRIER BUREAU SEEKS COMMENT ON SBC'S REQUEST FOR INTERPRETATION, WAIVER, OR MODIFICATION OF THE SBC/AMERITECH MERGER CONDITIONS.CC Docket 98-141, Contact Anthony Dale 2260. (DA No. 00-335).
Comments due Mar. 3
Replies Mar. 10
FCC SBC & Ameritech webpage