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 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  04-  149  January  26,  2004 
 ENFORCEMENT  BUREAU  SEEKS  COMMENT  ON  SBC  COMMUNICATIONS  INC.  SECTION  272 
 BIENNIAL  AUDIT  REPORT  IN  EB  DOCKET  NO.  03-  199 
 Comments  Due:  March  26,  2004 
 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 


 Arkansas,  California,  Illinois,  Indiana,  Kansas,  Michigan,  Missouri,  Nevada,  Ohio,  Oklahoma,  Texas,  and  Wisconsin.  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  audit.  3  We  have  received  the  results  of  the  biennial 
 audit  of  SBC’s  second  and  third  year  of  operations  in  Texas,  Kansas,  and  Oklahoma,  and  SBC’s  first  and  second  year  of  operations  in  Arkansas,  Missouri,  California,  and  Nevada.  The  audit  report,  “SBC 


 1  47  U.  S.  C.  §  271. 
 2  See  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);  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);  Joint  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  Arkansas  and  Missouri,  CC  Docket  No.  01-  194,  Memorandum  Opinion  and  Order,  16  FCC  Rcd  20719  (2001);  Application  by  SBC  Communications  Inc.,  Pacific  Bell  Telephone  Company,  and  Southwestern 
 Bell  Communications  Services,  Inc.,  for  Authorization  to  Provide  In-  Region,  InterLATA  Services  in  California,  WC  Docket  No.  02-  306,  Memorandum  Opinion  and  Order,  17  FCC  Rcd  25650  (2002);  Application  by  SBC 
 Communications  Inc.,  Nevada  Bell  Telephone  Company,  and  Southwestern  Bell  Communications  Services,  Inc.,  for  Authorization  to  Provide  In-  Region  InterLATA  Services  in  Nevada,  WC  Docket  No.  03-  10,  Memorandum  Opinion 
 and  Order,  18  FCC  Rcd  7196  (2003);  Application  by  SBC  Communications  Inc.,  Michigan  Bell  Telephone  Company,  and  Southwestern  Bell  Communications  Services,  Inc.,  for  Authorization  to  Provide  In-  Region, 
 InterLATA  Services  in  Michigan,  WC  Docket  No.  03-  138,  Memorandum  Opinion  and  Order,  18  FCC  Rcd  19024  (2003);  and  Joint  Application  by  SBC  Communications  Inc.,  Illinois  Bell  Telephone  Company,  Indiana  Bell 
 Telephone  Company  Incorporated,  the  Ohio  Bell  Telephone  Company,  Wisconsin  Bell,  Inc.,  and  Southwestern  Bell  Communications  Services,  Inc.,  for  Authorization  to  Provide  In-  Region,  InterLATA  Services  in  Illinois,  Indiana, 
 Ohio,  and  Wisconsin,  WC  Docket  No.  03-  167,  Memorandum  Opinion  and  Order,  18  FCC  Rcd  21543  (2003). 
 3  47  U.  S.  C.  §  272(  d). 
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 Communications  Inc.  Report  of  Independent  Accountants  on  Applying  Agreed-  Upon  Procedures,”  was  submitted  by  Ernst  &  Young  LLP  on  December  18,  2003. 
 Section  272(  d)(  2)  of  the  Communications  Act  requires  that  the  results  of  the  audit  be  made  publicly  available.  4  We  now  release  the  SBC  audit  report.  In  accordance  with  section  53.213(  d)  of  the 
 Commission’s  rules,  interested  parties  may  file  comments  on  the  report  with  the  Commission  within  60  days.  5  Accordingly,  comments  are  due  no  later  than  March  26,  2004. 


 EX  PARTE  PRESENTATIONS 
 We  find  that  it  would  be  in  the  public  interest  to  treat  this  proceeding  as  an  exempt  proceeding  under  the  ex  parte  rules.  6  Therefore,  subsequent  to  the  release  of  this  Public  Notice,  ex  parte  communications  to  or 
 from  Commission  decision-  making  personnel  are  permissible  and  need  not  be  disclosed,  in  accordance  with  section  1.1204(  b)  of  the  Commission's  Rules.  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.  9  Comments  filed  through  the  ECFS  can  be 
 sent  as  an  electronic  file  via  the  Internet  to  <http://  www.  fcc.  gov/  e-  file/  ecfs.  html>.  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  <your  e-  mail  address."  A  sample  form  and  directions  will  be  sent 
 in  reply. 
 Parties  who  choose  to  file  by  paper  must  file  an  original  and  four  copies  of  each  filing.  All  filings  must  be  sent  to  the  Commission's  Secretary,  Marlene  H.  Dortch,  Office  of  the  Secretary,  Federal 
 Communications  Commission,  445  12th  Street,  S.  W.,  CY-  B402,  Washington,  D.  C.  20554. 
 Parties  who  choose  to  file  by  paper  should  also  submit  their  comments  on  diskette.  These  diskettes  should  be  submitted  to:  Ernestine  Creech,  Room  3-  A247,  Investigations  and  Hearings  Division, 
 Enforcement  Bureau,  445  12th  Street,  S.  W.,  Washington,  D.  C.  20554.  Such  a  submission  should  be  on  a  3.5-  inch  diskette  formatted  in  an  IBM  compatible  format  using  Word  or  compatible  software.  The 
 diskette  should  be  accompanied  by  a  cover  letter  and  should  be  submitted  in  "read  only"  mode.  The  diskette  should  be  clearly  labeled  with  the  commenter's  name,  proceeding  (including  the  docket  number, 
 in  this  case  EB  Docket  No.  03-  199),  type  of  pleading  (comments),  date  of  submission,  and  the  name  of  the  electronic  file  on  the  diskette.  The  label  should  also  include  the  following  phrase  "Disk  Copy  -  Not  an 


 4  47  U.  S.  C.  §  272(  d)(  2). 
 5  47  C.  F.  R.  §  53.  213(  d). 


 6  See  47  C.  F.  R.  §§  1.1200(  a),  1.1204. 
 7  47  C.  F.  R.  §  1.  1204(  b). 
 9  See  Electronic  Filing  of  Documents  in  Rulemaking  Proceedings,  63  Fed.  Reg.  24,  121  (1998). 
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 Original."  Each  diskette  should  contain  only  one  party's  pleadings,  preferably  in  a  single  electronic  file.  In  addition,  commenters  must  send  diskette  copies  to  the  Commission's  copy  contractor,  Qualex 
 International,  Portals  II,  445  12  th  Street,  S.  W.,  Room  CY-  B402,  Washington,  D.  C.  20554. 


 All  filings  must  contain  the  docket  or  rulemaking  number  that  appears  in  the  caption  of  this  proceeding.  Filings  can  be  sent  by  hand  or  messenger  delivery,  by  commercial  overnight  courier,  or  by  first-  class  or 
 overnight  U.  S.  Postal  Service  mail  (although  we  continue  to  experience  delays  in  receiving  U.  S.  Postal  Service  mail).  The  Commission's  contractor  will  receive  hand-  delivered  or  messenger-  delivered  paper 
 filings  for  the  Commission's  Secretary  at  236  Massachusetts  Avenue,  N.  E.,  Suite  110,  Washington,  D.  C.  20002.  The  filing  hours  at  this  location  are  8:  00  a.  m.  to  7:  00  p.  m.  All  hand  deliveries  must  be  held 
 together  with  rubber  bands  or  fasteners.  Any  envelopes  must  be  disposed  of  before  entering  the  building.  Commercial  overnight  mail  (other  than  U.  S.  Postal  Service  Express  Mail  and  Priority  Mail)  must  be  sent 
 to  9300  East  Hampton  Drive,  Capitol  Heights,  MD  20743.  The  filing  hours  at  this  location  are  8  am.  to  5:  30  p.  m.  First-  class  U.  S.  Postal  Service  mail,  Express  Mail,  and  Priority  Mail  should  be  addressed  to 
 445  12th  Street,  S.  W.,  Washington,  D.  C.  20554.  All  filings  must  contain  the  Docket  Number,  and  must  be  addressed  to  the  Commission's  Secretary,  Office  of  the  Secretary,  Federal  Communications 
 Commission. 


 In  accordance  with  the  Commission’s  earlier  Public  Notice  announcing  that  hand-  delivered  or  messenger-delivered  filings  are  no  longer  accepted  at  the  Commission’s  headquarters,  hand-  delivered  or 
 messenger-  delivered  filings  must  be  delivered  to  236  Massachusetts  Avenue,  N.  E.,  Suite  110,  Washington,  D.  C.  20002.  10 


 Filings  and  comments  are  available  for  public  inspection  and  copying  during  regular  business  hours  at  the  FCC  Reference  Information  Center,  Portals  II,  445  12th  Street,  S.  W.,  Room  CY-  A257,  Washington, 
 D.  C.,  20554.  They  may  also  be  purchased  from  the  Commission's  duplicating  contractor,  Qualex  International,  Portals  II,  445  12th  Street,  S.  W.,  Room  CY-  B402,  Washington,  D.  C.,  20554,  telephone 
 (202)  863-  2893,  facsimile  (202)  863-  2898,  or  via  e-  mail  qualexint@  aol.  com. 


 If  you  are  sending  this  type  of  document  or  using  this  delivery  method…  It  should  be  addressed  for  delivery  to… 


 Hand-  delivered  or  messenger-  delivered  paper  filings  for  the  Commission’s  Secretary  236  Massachusetts  Avenue,  N.  E.,  Suite  110, 
 Washington,  D.  C.  20002  (8:  00  a.  m.  to  7:  00  p.  m.) 


 Commercial  overnight  mail  (other  than  United  States  Postal  Service  Express  Mail  and 
 Priority  Mail) 
 9300  East  Hampton  Drive,  Capitol  Heights,  MD  20743 
 (8:  00  a.  m.  to  5:  30  p.  m.) 


 United  States  Postal  Service  first-  class  mail,  Express  Mail,  and  Priority  Mail  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554 


 10  See  Public  Notice,  “FCC  Announces  New  Filing  Location  for  Paper  Documents,”  DA  01-  2919  (rel. 
 December  14,  2001). 
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 Parties  are  strongly  encouraged  to  file  comments  electronically  using  the  Commission’s  Electronic  Comment  Filing  System  (ECFS). 
 Copies  of  the  SBC  272(  d)  biennial  audit  report  and  any  subsequently  filed  documents  in  this  matter  may  be  obtained  from  the  Commission's  duplicating  contractor,  Qualex  International,  Portals  II,  445  12th 
 Street,  S.  W.,  Room  CY-  B402,  Washington,  D.  C.,  20554,  telephone  (202)  863-  2893,  facsimile  (202)  863-  2898,  or  via  e-  mail  qualexint@  aol.  com. 


 Electronic  versions  of  the  SBC  272(  d)  biennial  audit  report  are  also  available  on  the  FCC's  Internet  Home  Page  (http://  www.  fcc.  gov)  and  through  the  Commission's  Electronic  Comment  Filing  System.  To  the 
 extent  that  parties  file  electronic  versions  of  comments,  such  filings  also  will  be  available  on  the  FCC's  Internet  Home  Page  and  through  the  Commission's  Electronic  Comment  Filing  System.  Copies  of  the 
 audit  report  and  documents  are  also  available  for  public  inspection  and  copying  during  normal  reference  room  hours  at  the  Commission's  Reference  Center,  445  12th  Street,  S.  W.,  CY-  A257,  Washington,  D.  C. 
 20554. 
 For  further  information,  contact  Cathy  Carpino  at  (202)  418-  1593  or  Mika  Savir  at  (202)  418-  0384. 
 Action  by  the  Chief,  Enforcement  Bureau 
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