Updated 04/10/01
SBC
to Divest Itself of SecurityLink
FCC
and SBC Enter into Consent Degree on Alarm Monitoring
The Federal
Communications Commission (FCC) announced today a Consent Decree
between itself and SBC Communications, Inc, where SBC agrees to
use its best efforts to enter into a contract with a buyer to divest
itself of SBC’s affiliate, SecurityLink, prior to February 9,
2001, in such a way that SBC will not retain control of SecurityLink
nor of the buyer.
According to the FCC’s
news release,
“Divestiture of
SecurityLink would result in divestiture of both the grandfathered
alarm monitoring assets that Ameritech lawfully held before February
1996 and the alarm monitoring services assets that Ameritech
unlawfully acquired after February 1996.”
If SBC does not divest
itself of SecurityLink by February 9, 2001, it agrees to make a
voluntary contribution to the U.S. Treasury of $1,000,000 on February
10, 2001.
The Alarm Industry
Communications Committee (AICC), a coalition of industry
associations and alarm monitoring companies, fought vigorously for the
divestiture.
“The alarm industry
has pursued righteous causes in the face of perceived overwhelming
adversaries, and proven that it is “not the size of the dog in the
fight, but the size of the fight in the dog” that prevails. When you
have God and justice on your side, it is hard to lose,” said Ralph
W. Sevinor, President of the Central Station Alarm Association
(CSAA), a member of the AICC.
“After sixteen years
of work on Telecommunication issues and particularly the past four and
a half years since the signing of the Telecommunications Act, there is
now confirmation by both the FCC and Ameritech’s parent, SBC, that
the AICC alarm industry position was correct from the beginning,”
added Robert Bonifas, CSAA’s representative at the AICC.
The action terminates
certain enforcement proceedings pending before the FCC concerning
compliance by SBC's affiliates, Ameritech Corp. and
SecurityLink with Section 275 of the Communications Act, which
prohibits Bell Operating Companies (BOCs) from providing monitoring
services before February 2001.
A "grandfather"
exception allowed Ameritech to continue to provide alarm monitoring
services that it had begun providing prior to February 1996.
Section 275(a)(2)
prohibits Ameritech from obtaining an equity interest in or financial
control of additional unaffiliated alarm monitoring entities from
February 1996 to February 2001.
Ameritech merged into SBC
Communications on October 6, 1999, after Ameritech acquired the five
monitoring entities.
"The FCC/SBC
Consent Decree affirms that those in the alarm industry who stayed the
course were legally, ethically and morally correct to seek a remedy
when Ameritech violated federal law," said Stephen P. Doyle,
Executive Vice President of CSAA.
NOTE: Click here
for a copy of the
Consent Decree.
Requires Adobe Acrobat Reader-download here
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