Accounting Safeguards Under the Telecommunications Act of 1996
On December 23, 1996, the Commission adopted a Report and Order (``Order'') establishing accounting safeguards necessary to satisfy the requirements of Sections 260 and 271 through 276 of the Communications Act of 1934, as amended by the Telecommunications Act of 1996 (``1996 Act''). This Order prescribes the way incumbent local exchange carriers, including the Bell Operating Companies (``BOCs''), must account for transactions with affiliates involving, and allocate costs incurred in the provision of, both regulated telecommunications services and nonregulated services, including telemessaging, interLATA telecommunications, information, manufacturing, electronic publishing, alarm monitoring and payphone services, to ensure compliance with the 1996 Act.