October 17, 2001 -- According to a Newsbytes article, the Federal Communications Commission recommended fining SBC Communications [NYSE:SBC] $2.52 million for filing inaccurate information in documents related to its application to provide long distance services in Kansas and Oklahoma. SBC provided inaccurate information on three affidavits regarding its loop qualification system, and didn't inform the FCC in a timely manner that information on three affidavits was inaccurate.

SBC failed to comply with an FCC consent decree requiring the company to train employees who had regular contact with the commission. The FCC proposed a $1.2 million fine for each violation. SBC also misrepresented data during an investigation by FCC officials, the commission said, and recommended a $120,000 fine.

"The fine issued by the FCC this afternoon is the regulatory equivalent of a 'five dollar' parking ticket," said H. Russell Frisby, Jr., president of CompTel. "CompTel is disappointed that the FCC did not take stronger action and send a message to SBC that the Commission is serious about its role in opening local phone markets and that the accuracy of information filed at the Commission is paramount.

"This incident illustrates that the FCC must closely scrutinize all future Bell applications for long distance, and draws attention to the dangers of self-certification of information by the Bells," added Frisby. "If the FCC fails to more closely review Bell long distance applications, consumers will be the ones to pay the price."