NEWS
Report No. CC   95-44           COMMON CARRIER ACTION            August 11, 1995



            AMERITECH APPARENTLY LIABILITY FOR FORFEITURE FOR
       CONSTRUCTION OF CABLE FACILITY WITHOUT SECTION 214 APPROVAL


     The Commission has issued a Notice of Apparent Liability (NAL) finding Ameritech
Corporation apparently liable for a forfeiture penalty of $200,000 for willfully violating
Section 214 of the Communications Act of 1934 by constructing new facilities without first
obtaining the necessary authorization from the Commission.  Ameritech will have the
opportunity to submit evidence  and arguments in response to this NAL to show that no
forfeiture should be imposed or that some lesser amount should be assessed.  Ameritech must
either file this response or pay the full amount of the proposed forfeiture within 30 days of
the release of this NAL. 

     On June 28, 1995, an Ameritech affiliate signed a cable franchise agreement with
cable authorities for Plymouth Township, Michigan, a Detroit suburb.  Based on an
investigation by the Commission staff, along with evidence submitted by the Michigan Cable
Television Association, the Commission found that Ameritech  may have begun constructing
cable facilities in Plymouth Township shortly after execution of the agreement and no later
than July 20, 1995.

     Section 214 of the Communications Act provides that no carrier shall construct,
extend or acquire a new line without first obtaining Commission authorization.  The
Commission noted that it is well established that, under this provision,  local exchange
carriers ("LECs") are required to obtain Commission authorization before constructing a
cable television system.  The Commission noted in issuing this NAL that the Common
Carrier Bureau recently issued a public notice reminding carriers that Section 214 approval is
required before constructing a cable system in their telephone service areas.  Ameritech, a
LEC, has neither obtained nor applied for authorization from the Commission under Section
214 of the Act for construction of this cable system.  Therefore, the Commission found that
Ameritech has willfully violated Section 214.

 (over)
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     Under the Communications Act, the Commission is authorized to assess a forfeiture
against a common carrier of up to $100,000 for each violation or each day of a continuing
violation up to a maximum of $1,000,000 for a single act or failure to act.  The Commission
found that construction of facilities without prior Section 214 approval was a serious
violation and that $200,000 is reasonable relative to the violation and Ameritech's assets and
revenues.

     Action by the Commission August 11, 1995, by Memorandum Opinion and Order
(FCC 95-356).  Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong.

  -FCC-

News media contact:  Susan Lewis Sallet at (202) 418-1500.
Common Carrier Bureau contact:  Kurt Schroeder at (202) 418-0960.