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 NEWS  News  media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT: 
 January  22,  2001  Michael  Balmoris  202-  418-  0253 
 Email:  mbalmori@  fcc.  gov 


 FCC  AUTHORIZES  SBC  COMMUNICATIONS  TO  PROVIDE  LONG  DISTANCE 
 SERVICE  IN  KANSAS  AND  OKLAHOMA 


 Successful  Application  is  First  for  a  Rural  State 
 Washington,  D.  C.  –  The  Federal  Communications  Commission  (FCC)  approved 
 SBC  Communications,  Inc.  ’s  joint  application  to  provide  long  distance  service  in  Kansas 
 and  Oklahoma.  The  Commission’s  decision  represents  the  first  time  that  it  has  approved  a 
 long  distance  application  for  a  more  rural  state.  Additionally,  following  on  the  heels  of  the 
 Commission’s  approval  of  SBC’s  application  for  the  state  of  Texas,  this  is  the  first  time  the 
 Commission  has  approved  an  application  for  additional  states  within  a  single  Regional  Bell 
 Operating  Company  (BOC)  region.  Approval  of  SBC’s  long  distance  application  promises 
 substantial  benefits  for  consumers  in  the  form  of  new  service  providers,  lower  prices, 
 tailored  and  bundled  service  packages,  and  better  customer  service. 


 In  the  Telecommunications  Act  of  1996,  Congress  envisioned  fundamental  pro-competitive 
 changes  in  the  telecommunications  environment  by  making  a  BOC’s  entry 
 into  the  long  distance  market  contingent  on  the  BOC  first  opening  its  local  service 
 monopoly  to  compet  ition.  A  BOC  sat  isfies  this  contingency  by  demonstrating  compliance 
 with  section  271  of  the  Act.  After  a  BOC  files  a  long  distance  application  with  the 
 Commission,  the  Commission  has  90  days  to  determine  whether  a  BOC  has  taken  the 
 statutorily  required  steps  to  open  its  local  telecommunications  markets  to  competit  ion, 
 including  compliance  with  the  Act’s  section  271  14-  point  “competitive  checklist.”  Since 
 the  passage  of  the  1996  Act,  the  FCC  has  denied  five  section  271  applications,  and  now 
 has  approved  long  distance  entry  into  four  states. 


 Summary  of  Competitive  Activity  x 
 Competitors  serve  between  9-  12%  of  local  telephone  lines  in  Kansas. 


 x  Competitors  serve  more  than  85,000  business  lines  and  more  than  46,000 
 residential  lines  in  Kansas. 


 x  Competitors  serve  between  5-  9%  of  local  telephone  lines  in  Oklahoma. 


 x  Competitors  serve  more  than  66,000  business  lines  and  more  than  49,000 
 residential  lines  in  Oklahoma. 
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 The  Commission  emphasizes  that  the  grant  of  this  section  271  application 
 may  close  a  chapter  of  this  proceeding,  but  it  is  not  the  end  of  the  story.  SBC  must 
 continue  to  comply  with  the  checklist  requirements,  and  the  Commission  has  a 
 number  of  enforcement  tools  at  its  disposal,  including  imposing  penalties  or 
 suspension  of  approval. 


 Because  the  Commission  relies  on  pricing  amendments  that  were  filed  while  SBC’s 
 application  was  pending,  the  Commission’s  authorization  of  SBC’s  application  will 
 become  effective  43  days  after  release  of  the  Order  to  ensure  that  SBC  does  not  receive  the 
 benefits  of  late-  filed  changes  to  its  application. 


 Action  by  the  Commission  January  19,  2001,  by  Memorandum  Opinion  and  Order 
 (FCC  01-  29).  Chairman  Kennard  approving  and  issuing  a  statement;  Commissioner  Ness 
 concurring  and  issuing  a  statement;  Commissioner  Furchtgott-  Roth  concurring  in  part, 
 dissenting  in  part,  and  issuing  a  statement;  Commissioner  Powell  approving  in  part, 
 dissenting  in  part,  and  issuing  a  statement;  and  Commission  Tristani  approving. 


 -FCC-Docket 
 No.:  CC  00-  217 


 Common  Carrier  Bureau  Staff  Contact:  John  Stanley  at  202/  418-  1580 
 News  about  the  Federal  Communications  Commission  can  also  be  found 
 on  the  Commission’s  web  site  www.  fcc.  gov. 
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