SBC, Verizon fined again

SBC Communications and Verizon Communications are paying fines to the federal government for not giving competition enough access into their local networks--a requirement stipulated in their merger-agreement approvals from the FCC.

This month, SBC paid the federal government $3.51 million for not meeting performance targets; Verizon paid $841,294. In total, SBC has paid about $51.4 million since December 2000; Verizon has paid about $4 million since August.

Both companies set performance targets with the FCC associated with letting competition access their networks. SBC, which serves most of the Midwest and California, was required to adhere to performance targets because of its Ameritech acquisition; and Verizon, which serves the East Coast, was required to meet targets when Bell Atlantic and GTE merged to create the company.

Although both Bell companies are paying fines for not opening their networks, they are the only Bell companies to receive long-distance approval in in-region states from the FCC. SBC has earned long-distance relief in five states—Texas, Arkansas, Oklahoma, Missouri and Kansas--while Verizon has received long-distance approvals in four states--New York, Massachusetts, Connecticut and Pennsylvania.

SBC and Verizon have to pay penalties when targets are missed for the consecutive months. Performance target fines have to be paid when carriers miss goals for three consecutive months.

--Amalia D. Parthenios, staff writer