*Pages 1--4 from Microsoft Word - 22542.doc* PUBLIC NOTICE Federal Communications Commission 445 12 th St., S. W. Washington, D. C. 20554 News Media Information 202 / 418- 0500 Fax- On- Demand 202 / 418- 2830 TTY 202 / 418- 2555 Internet: http:// www. fcc. gov ftp fcc gov DA 02- 2925 October 31, 2002 ENFORCEMENT BUREAU SEEKS COMMENTS ON SBC COMMUNICATIONS SECTION 272 COMPLIANCE BIENNIAL AUDIT REPORT IN CC DOCKET NO. 96- 150 Comments due: December 30, 2002 Pursuant to section 271 of the Communications Act of 1934, as amended (“ Communications Act”), 1 the Commission has authorized SBC Communications, Inc. (“ SBC”) to enter the in- region interLATA market in Texas, Kansas, and Oklahoma. 2 Section 272 of the Communications Act requires Bell Operating Companies to offer in- region, interLATA service through separate affiliates that comply with certain structural, nondiscrimination, and accounting safeguards. Section 272( d) requires a biennial compliance audit. 3 We have received the results of the biennial audit of SBC’s first year of operations in Texas, Kansas, and Oklahoma. The audit report, which was submitted by Ernst and Young, LLP on December 17, 2001, includes: Report of Independent Accountants on Applying Agreed- Upon Procedures; SBC’s Response to the Report of Independent Accountants; and Observation of the Joint Federal/ State Oversight Team. Section 272( d)( 2) of the Communications Act requires that the results of the audit be made publicly available. 4 Having resolved certain confidentiality issues concerning the audit report, 5 we now release the attached audit report. In accordance with section 53.213( d) of the Commission’s rules, interested parties 1 47 U. S. C. § 271. 2 Application by SBC Communications, Inc., Southwestern Bell Telephone Company, and Southwestern Bell Communications Services, Inc. d/ b/ a Southwestern Bell Long Distance Pursuant to Section 271 of the Telecommunications Act of 1996 to Provide In- Region InterLATA Services in Texas, CC Docket No. 00- 65, Memorandum Opinion and Order, 15 FCC Rcd 18354 (2000) (SBC Texas 271 Order); Joint Application by SBC Communications, Inc., Southwestern Bell Telephone Company, and Southwestern Bell Communications Services, Inc. d/ b/ a Southwestern Bell Long Distance for Provision of In- Region InterLATA Services in Kansas and Oklahoma, CC Docket No. 00- 217, Memorandum Opinion and Order, 16 FCC Rcd 6237 (2001) (SBC Kansas/ Oklahoma 271 Order). 3 47 U. S. C. § 272( d). 4 47 U. S. C. § 272( d)( 2). 5 Accounting Safeguards Under the Telecommunications Act of 1996: Section 272( d) Biennial Audit Procedures, CC Docket No. 96- 150, Memorandum Opinion and Order, 17 FCC Rcd 17012 (2002) (SBC Section 272 Confidentiality Order). 1 2 may file comments on the report with the Commission within 60 days. 6 Accordingly, comments are due no later than December 30, 2002. EX PARTE PRESENTATIONS Pursuant to section 1.1206 of the Commission's rules, this proceeding will be conducted as a permit- but- disclose proceeding in which ex parte communications are permissible but subject to disclosure. 7 FILING PROCEDURES Interested parties may file comments on the biennial audit report using the Commission's Electronic Comment Filing System (ECFS) or by filing paper copies. 8 Comments filed through the ECFS can be sent as an electronic file via the Internet to . Generally, only one copy of an electronic submission must be filed. In completing the transmittal screen, commenters should include their full name, Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit an electronic comment by Internet e- mail. To get filing instructions for e- mail comments, commenters should send an e- mail to ecfs@ fcc. gov, and should include the following words in the body of the message, "get form