FCC Expands Review of SBC Communications

U.S. regulators said they have expanded an investigation into why SBC Communications Inc. filed false information as it sought government approval to sell long-distance phone service in Kansas and Oklahoma.

The second-largest U.S. local phone company may face fines or be required to stop providing long-distance services in those states. The Federal Communications Commission disclosed its review in a brief with the U.S. District Court of Appeals for the District of Columbia.

Separately, the FCC is studying data submitted by the San Antonio-based carrier for approval to sell long-distance in Texas, where it has more than 2 million customers, and in Missouri, the Wall Street Journal reported, citing people familiar with the matter.

The company is unaware of other investigations into its long- distance applications. FCC Enforcement Bureau spokesman John Winston declined to comment.

SBC shares fell $1.40 to close at $40.31 on the NYSE.