Phones Companies Not Deterred by Fines
In two separate forums in Washington today, regulators and lawmakers pointed to huge fines levied against the nation's largest telephone companies as indications that it is more economical for the carriers to pay millions of dollars in penalties than comply with their obligations regarding public safety and competition.

The Federal Communications Commission said it plans to fine AT&T Wireless Services Inc. $2.2 million, charging that the carrier shirked its duty to make sure that emergency dispatch centers can locate wireless callers dialing 911. AT&T said it will fight the proposed penalty.

Meanwhile, Sen. Ernest Hollings, D-S.C., said Congress might have to pass legislation dividing the Regional Bell Operating Companies into separate wholesale and retail operations to ensure that they allow competing operators to lease portions of the local network, as required by the Telecommunications Act of 1996.

Hollings said that the hundreds of millions of dollars the FCC has charged the telcos have not deterred them from violating the Act. Quest Communications Inc. was fined $878.7 million; SBC Communications Inc. $739.1 million; Verizon Communications Inc. $300.4 million; and BellSouth Corp. $20.5 million.
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