FCC fines Verizon for affiliates' violations

The FCC has fined Verizon Communications $283,800 for allegedly violating the commission's affiliate transactions rules. Telecom law requires the Bells to remain structurally separate from their long-distance affiliates and conduct transactions on an “arms-length” basis. However, a biennial audit of the long-distance operations of Verizon New York revealed that the carrier “apparently did not comply” with these requirements, the FCC said. Section 252 of the Telecom Act requires such audits every two years in states where an RBOC is providing in-region long-distance services. The FCC approved Verizon’s application for New York in December 1999.