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SBC Faces Record $6-Million FCC Fine

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Associated Press

The Federal Communications Commission proposed fining SBC Communications Inc. $6 million, the largest fine ever proposed by the agency, for allegedly failing to comply with conditions of its merger with Ameritech in 1999. The commission said SBC failed to offer competing local telephone companies fair terms for access to part of its network in five states, as the FCC had required.

The company has 30 days to contest the proposed fine or pay.

San Antonio-based SBC disputed the FCC’s conclusions and said it would appeal to the commission to drop the penalty.

SBC’s shares fell 37 cents to close $36.51 on the NYSE.

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