**DA 04-2092**

**July 13, 2004**

**ENFORCEMENT BUREAU SEEKS COMMENT ON SBC'S REQUEST TO DISCONTINUE AUDIT
OF SBC'S COMPLIANCE WITH MERGER CONDITIONS**

**CC DOCKET NO. 98-141**

**Comments Due: July 27, 2004**

**Reply Comments Due: August 10, 2004**

On June 9, 2004, SBC Communications Inc. ("SBC") submitted a letter
requesting that the Commission no longer require it to engage an
independent auditor to examine its compliance with the conditions of the
*SBC/Ameritech Merger Order*[^1] for all periods beginning on or after
January 1, 2004. [^2] Condition XXVII of the Commission's *Merger Order*
requires SBC to retain an independent auditor on an annual basis to
conduct a compliance audit for all merger conditions in effect during
the period, and to publicly file a report with the Commission.[^3]
Because SBC's request effectively asks the Commission to eliminate
Condition XXVII for future periods, we seek comment of interested
parties prior to making a determination.

*EX PARTE* STATUS AND PRESENTATIONS

Because of the policy implications and the potential impact of this
proceeding on persons not parties to this request, we find it would be
in the public interest to treat this case as a permit-but-disclose
proceeding under the Commission's *ex parte* rules.[^4] *Ex parte*
presentations that are made with respect to the issues involved in this
proceeding will be allowed but must be disclosed in accordance with the
requirements of section 1.1206(b) of the Commission\'s rules.[^5]

FILING PROCEDURES

Pursuant to sections 1.415 and 1.419 of the Commission\'s rules,
interested parties may file comments on or before [July 27,
2004]{.underline}, and reply comments on or before [August 10,
2004]{.underline}.[^6] Comments may be filed using the Commission\'s
Electronic Comment Filing System (ECFS) or by filing paper copies. See
Electronic Filing of Documents in Rulemaking Proceedings, 63 Fed. Reg.
24121 (1998).

Comments filed through the ECFS can be sent as an electronic file via
the Internet to <http://www.fcc.gov/cgb/ecfs/>. Generally, only one copy
of an electronic submission must be filed. If multiple docket or
rulemaking numbers appear in the caption of this proceeding, however,
commenters must transmit one electronic copy of the comments to each
docket or rulemaking number referenced in the caption. In completing the
transmittal screen, commenters should include their full name, U.S.
Postal Service mailing address, and the applicable docket or rulemaking
number, in this case, CC Docket No. 98-184. 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." 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. If more than one docket or rulemaking number
appear in the caption of this proceeding, commenters must submit two
additional copies for each additional docket or rulemaking number.

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 Acrobat Reader. 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 CC Docket No. 98-184), type of pleading
(comments and reply 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 Original.\" Each diskette should
contain only one party\'s pleadings, preferably in a single electronic
file. In addition, commenters must send a diskette copy to the
Commission\'s copy contractor, Best Copy and Printing, Inc., 445 12th
Street, S.W., Room CY-B402, Washington, D.C. 20554, or via e-mail at
**joshir@erols.com**. A courtesy copy of all comments should be provided
in an IBM compatible format using Word or Acrobat Reader via e-mail to
diana.lee@fcc.gov.

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, Natek, Inc., 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.
>
> -U.S. Postal Service first-class mail, Express Mail, and Priority Mail
> should be addressed to 445 12th Street, SW, Washington, D.C. 20554.
>
> -All filings must be addressed to the Commission\'s Secretary, Office
> of the Secretary, Federal Communications Commission.

Filings and comments are available for public inspection and copying
during regular business hours at the FCC Reference Center, Portals II,
445 12th Street, S.W., Room CY-A257, Washington, D.C. 20554, (202)
418-0270. They may also be purchased from the Commission's copy
contractor, Best Copy and Printing, Inc., 445 12th Street, S.W., Room
CY-B402, Washington, D.C. 20554, telephone 1(800) 378-3160 or (202)
863-2893, facsimile (202) 863-2898, or via e-mail at
**joshir@erols.com.**

Comments and reply comments must include a short and concise summary of
the substantive arguments raised in the pleading. Comments and reply
comments must also comply with section 1.48 and all other applicable
sections of the Commission's rules.[^7] We direct all interested parties
to include the name of the filing party and the date of the filing on
each page of their comments and reply comments. All parties are
encouraged to utilize a table of contents, regardless of the length of
their submission.

For further information, contact Trent Harkrader, (202) 418-2955,
**[trent.harkrader@fcc.gov]{.underline}**, or Diana Lee, (202) 418-0843,
**[diana.lee@fcc.gov]{.underline}**, of the Investigations and Hearings
Division, Enforcement Bureau.

Action by the Chief, Investigations and Hearings Division, Enforcement
Bureau.

[^1]: *Applications of Ameritech Corp., Transferor, and SBC
    Communications, Inc., Transferee, For Consent to Transfer of Control
    of Corporations Holding Commission Licenses and Lines Pursuant to
    Section 214 and 310(d) of the Communications Act and Parts 5, 22,
    24, 25, 63, 90, 95, and 101 of the Commission's Rules*, CC Docket
    No. 98-141, Memorandum Opinion and Order, 14 FCC Rcd 14712 (1999)
    ("*Merger Order*"). The Enforcement Bureau is also seeking comment
    on a similar request by Verizon with respect to the Bell
    Atlantic/GTE Merger audit requirements in CC Docket No. 98-184.
    *See* Public Notice, "Enforcement Bureau Seeks Comment on Verizon's
    Request to Discontinue Audit of Verizon's Compliance with Merger
    Conditions," DA 04-2093 (rel. July 13, 2004).

[^2]: *See* Letter from Jim Lamoureux, Senior Counsel , SBC
    Telecommunications, Inc. to William H. Davenport, Chief,
    Investigations and Hearings Division, Enforcement Bureau, Federal
    Communications Commission, dated June 9, 2004 ("*SBC Request*")
    (attached to this Public Notice). Pursuant to the Bureau's request,
    SBC supplemented its request with a filing on July 7, 2004,
    providing additional information regarding the conditions that
    sunset after May 31, 2004. *See* Letter from David Cartwright, to
    Diana Lee, Investigations and Hearings Division, Enforcement Bureau,
    Federal Communications Commission, dated July 7, 2004 (attached to
    this Public Notice) ("SBC Supplemental Letter").

[^3]: *See Merger Order*, 14 FCC Rcd at 14882-84, ¶¶ 410 -12 (Appendix
    D, 14 FCC Rcd at 15034-35, ¶ 66). *See also* *Delegation of
    Additional Authority to the Enforcement Bureau,* 17 FCC Rcd 4795
    (2002) (delegating authority to the Enforcement Bureau to carry out
    merger-related audit and compliance tasks).

[^4]: 47 C.F.R. §§ 1.1200(a), 1.1206.

[^5]: 47 C.F.R. § 1.1206(b).

[^6]: 47 C.F.R. §§ 1.415, 1.419.

[^7]: *See* 47 C.F.R. § 1.49.