FCC seeks $100,000 fine from SBC for alleged order violation

The FCC has found that SBC Communications is “apparently liable” for a forfeiture of $100,000 stemming from an alleged violation of an enforcement bureau order.

SBC countered by saying that the commission has overstepped its authority.

According to the Notice of Apparent Liability issued by the commission, SBC was ordered in September 2000 to provide data on DSL provisioning and maintenance for its affiliated and unaffiliated Internet service providers (ISPs). The FCC was investigating whether SBC was “discriminating in its provisioning and maintenance of DSL.”

SBC informed the commission in October 2000--and again in December 2000--that it was unable to provide the information, according to the FCC. In April 2001, SBC addressed the issue in an unrelated rulemaking procedure, said the commission. This prompted the FCC to issue a supplemental letter of inquiry last month that ordered the carrier to explain “apparent discrepancies” in the statements made in October and December of last year with those made in April.

SBC was to have done so in sworn statements and didn’t, alleged the FCC, resulting in the $100,000 fine. While SBC doesn’t dispute that it didn’t provide sworn statements, Priscilla Hill Ardoin--the carrier’s senior vice president of federal policy--said in a statement that SBC was “confounded” because its 23-page response provided to the FCC was “detailed, substantive, timely and in no way impeded the Bureau’s ability to gather information.”

SBC maintains the enforcement bureau’s insistence on sworn statements is unprecedented and not supported by case law. According to Hill Ardoin, the enforcement bureau is empowered to issue subpoenas for documents and witnesses but has no authority to require the submission of affidavits.

“As we traditionally do, we asked an attorney to gather the information that was provided to the commission. Having to get affidavits from everybody would just drag everything out,” said an SBC spokesman.