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                                                        DA 04-149
                                                 January 26, 2004

               ENFORCEMENT BUREAU SEEKS COMMENT ON
               SBC COMMUNICATIONS INC. SECTION 272 
          BIENNIAL AUDIT REPORT IN EB DOCKET NO. 03-199

Comments Due:   March 26, 2004   
Pursuant to section 271 of the Communications Act of 1934, as 
amended (``Communications Act''),1 the Commission has authorized 
SBC Communications Inc. (``SBC'') to enter the in-region 
interLATA market in Arkansas, California, Illinois, Indiana, 
Kansas, Michigan, Missouri, Nevada, Ohio, Oklahoma, Texas, and 
Wisconsin. 2  Section 272 of the Communications Act requires Bell 
Operating Companies to offer in-region, interLATA service through 
separate affiliates that comply with certain structural, 
nondiscrimination, and accounting safeguards.  Section 272(d) 
requires a biennial audit.3  We have received the results of the 
biennial audit of SBC's second and third year of operations in 
Texas, Kansas, and Oklahoma, and SBC's first and second year of 
operations in Arkansas, Missouri, California, and Nevada.  The 
audit report, ``SBC Communications Inc. Report of Independent 
Accountants on Applying Agreed-Upon Procedures,'' was submitted 
by Ernst & Young LLP on December 18, 2003.

Section 272(d)(2) of the Communications Act requires that the 
results of the audit be made publicly available.4  We now release 
the SBC audit report.  In accordance with section 53.213(d) of 
the Commission's rules,  interested parties may file comments on 
the report with the Commission within 60 days. 5  Accordingly, 
comments are due no later than March 26, 2004.

EX PARTE PRESENTATIONS

We find that it would be in the public interest to treat this 
proceeding as an exempt proceeding under the ex parte rules.6  
Therefore, subsequent to the release of this Public Notice, ex 
parte communications to or from Commission decision-making 
personnel are permissible and need not be disclosed, in 
accordance with section 1.1204(b) of the Commission's Rules.7  8

FILING PROCEDURES

Interested parties may file comments on the biennial audit report 
using the Commission's Electronic Comment Filing System (ECFS) or 
by filing paper copies.9  Comments filed through the ECFS can be 
sent as an electronic file via the Internet to 
.  Generally, only one copy 
of an electronic submission must be filed.  In completing the 
transmittal screen, commenters should include their full name, 
Postal Service mailing address, and the applicable docket or 
rulemaking number.  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