Because the current FCC fines only run $1.2 million per violation, many ILECs (incumbent local exchange carriers) like Verizon, BellSouth and PacBell have ignored the Telecommunications Act of 1996. The FCC now wants to up the fines to $10 million per violation, which would put a strain on the cash-rich baby bells. Many CLECs are dead now because they could not compete against the established utilities.