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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:  April  17,  2003  John  R.  Winston  (202)  418-  7450 
 FCC  GRANTS  FORMAL  COMPLAINT;  FINDS  SBC  IN  VIOLATION  OF  THE  SBC/  AMERITECH  MERGER  ORDER 
 Washington,  D.  C.  –  Today  the  Federal  Communications  Commission  granted  in  part  a  complaint  brought  by  Core  Communications,  Inc.  and  Z-  Tel  Communications,  Inc.  against  SBC 
 Communications,  Inc.  and  its  nine  incumbent  local  exchange  affiliates.  Core  and  Z-  Tel  alleged  that  SBC  had  violated  conditions  imposed  by  the  FCC  in  the  SBC/  Ameritech  Merger  Order  and 
 section  251  of  the  Communications  Act  by  refusing  to  allow  Core  and  Z-  Tel  to  use  the  shared  transport  unbundled  network  element  to  transport  intraLATA  toll  calls. 


 The  Commission  found  that  SBC  did  violate  the  SBC/  Ameritech  Merger  Order,  referencing  its  October  9,  2002  Forfeiture  Order  imposing  a  $6  million  forfeiture  on  SBC  for 
 violation  of  the  same  requirement.  Core  and  Z-  Tel  may  now  file  a  supplemental  complaint  for  damages  caused  by  SBC’s  violations. 


 With  respect  to  the  section  251  claims,  the  Commission  rejected  SBC’s  argument  that  disputes  arising  from  the  local  competition  provisions  of  the  Communications  Act  must  be 
 resolved  only  through  state  processes.  The  Commission  ruled  that  it  had  jurisdiction  to  resolve  Core  and  Z-  Tel’s  claims.  Based  on  the  facts  of  this  case,  the  Commission  ruled  in  favor  of  SBC 
 on  the  merits  of  the  section  251  claims. 


 Action  by  the  Commission,  April  10,  2003,  by  Memorandum  Opinion  and  Order  (FCC  03-  83).  Chairman  Powell,  Commissioners  Copps,  Martin,  and  Adelstein,  with 
 Commissioner  Abernathy  issuing  a  separate  statement. 


 Enforcement  Bureau  contact:  John  R.  Winston  or  Suzanne  Tetreault  at  (202)  418-  7450. 
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