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SBC Disappointed With FCC Shared Transport Forfeiture Order.


Business Editors

WASHINGTON--(BUSINESS WIRE)--Oct. 9, 2002

SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002.  Communications Inc. (NYSE NYSE

See: New York Stock Exchange
:SBC)

Background: The Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest.  has found that SBC violated the SBC/Ameritech merger conditions with respect to how we provided "shared transport Shared transport is a term which has come into use to provide an extended definition of what has often been thought of and referred to in the past as "public transport". The term has taken on especial relevance as a result of the push to more sustainable transportation or New " to competitive local exchange carriers in the Ameritech states ("shared transport" is essentially the connection between a local exchange carrier's central offices.) At the time of the SBC/Ameritech merger (October 1999), Ameritech was not providing competitors with any shared transport over its network. SBC, however, agreed to provide shared access to competitors for the purpose of providing local transport in the Ameritech region, since the company was providing it in Texas for local traffic. As intended, the new offering successfully helped jumpstart competitive entry in the Ameritech region, which today includes some of the country's most competitive telecommunications markets. Given the clear focus on shared transport for the purpose of enabling competitors to provide local service, SBC does not agree that the obligation to provide such shared access was also intended to apply to long distance service. Nonetheless, SBC currently offers competitors in the Ameritech region and elsewhere a shared transport option for providing both local and toll service.

The following statement may be attributed to James C. Smith, SBC senior vice president-FCC.

SBC is obviously disappointed by today's Federal Communications Commission order. We believe that the Commission has mistakenly interpreted not only the letter, but also the intent of the shared transport merger condition. Our belief is that SBC's shared transport offering clearly meets the company's obligation under the SBC/Ameritech Merger Conditions to provide competitors with shared access to our networks in the Ameritech region and elsewhere. It is important to understand that there was no shared transport offering whatsoever available to competitors in the Ameritech region prior to the SBC- Ameritech merger. After the merger, SBC did implement such an offering, helping to jump start competition in the Ameritech region. That's one reason why CLECs today are serving 12 million access lines in our territory.

At this point, we are reviewing the Commission's action in this matter and considering our options.

SBC Communications Inc. (www.sbc.com) is one of the world's leading data, voice and Internet services providers. Through its world-class network and its subsidiaries' trusted brands - SBC Southwestern Bell
For information on the holding company Southwestern Bell Corporation, later SBC Communications, Inc., and now AT&T Inc., see AT&T.


Southwestern Bell Telephone, L.P.
, SBC Ameritech, SBC Pacific Bell, SBC Nevada Bell Bell Telephone Company of Nevada was the Bell System's telephone provider in Nevada. It only provides telephone services to 30% of the state, not including Las Vegas, where service is provided by Embarq, formerly Sprint. , SBC SNET n. 1. The fat of a deer.
v. t. 1. The clear of mucus; to blow.
 and Sterling Commerce - SBC companies provide a full range of voice, data, networking and e-business services, as well as directory advertising and publishing. A Fortune 27 company, America's leading provider of high-speed DSL DSL
 in full Digital Subscriber Line

Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary
 Internet Access services, and one of the nation's leading Internet Service Providers Internet service provider (ISP)

Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password.
, SBC companies currently serve nearly 58 million access lines nationwide. In addition, SBC owns 60 percent of America's second largest wireless company -- Cingular Wireless -- which serves more than 22 million wireless customers. Internationally, SBC has telecommunications investments in 28 countries.
COPYRIGHT 2002 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Oct 9, 2002
Words:476
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