Click here for Adobe Acrobat version
Click here for Microsoft Word version
This document was converted from Microsoft Word.
Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.
All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.
Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.
If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.
1. This consent decree is entered into by the
Enforcement Bureau of the Federal Communications Commission
(``Bureau'') and AT&T Wireless Services, Inc. (``AWS''),
terminating an informal Bureau investigation into AWS's
compliance with the spectrum aggregation limit contained in
Section 20.6 of the Commission's rules.1
2. For various periods of time beginning in 2000 and
continuing during the past 12 months, AWS had an
attributable interest in spectrum in excess of the limit
imposed by Section 20.6 of the Commission's rules in certain
counties in the following 11 basic trading areas (``BTAs'')
for the stated periods of time, (a) in two BTAs (Lousiville,
KY; and Bowling Green, KY) for a period of nearly 20 months
(from February 25, 2000, to October 19, 2001); and (b) in
one BTA (Beaumont, TX) continuously since April 7, 2000; and
(c) in eight BTAs (Dalton, GA; Madisonville, KY; Owensboro,
KY; Natchez, MS; Rome, GA; Somerset, KY; Tupelo-Corinth, MS;
and Corbin, KY) for a period of nearly 10 months (from
December 26, 2000, to October 19, 2001).
3. The overages resulted from three separate
transactions or series of transactions, including (a) a
February 25, 2000 transaction involving American Cellular
Corporation, (b) an April 7, 2000 pro forma reorganization
of TeleCorp Holding Corp., Inc., and (c) a series of
transactions occurring on December 26, 2000, December 28,
2000 and September 26, 2001 involving Cascade Wireless,
L.L.C, ABC Wireless, LLC, and Tritel C/F Holding Corp.
4. In late August or early September 2001, research
conducted by staff of the Wireless Telecommunications Bureau
(``WTB'') raised questions about AWS's compliance with
Section 20.6 of the Commission's rules in at least one
geographic area. WTB notified AWS and requested additional
information. In subsequent teleconferences and face-to-face
meetings with WTB staff, AWS confirmed the existence of
Section 20.6 compliance problems in multiple geographic
5. On October 19, 2001, AWS filed applications
seeking Commission consent to the divestiture of certain
spectrum attributable to AWS in certain counties in 10 BTAs
in which AWS had exceeded the spectrum cap limits.2 Those
applications were granted on February 12, 2002.3 On June
21, 2002, AWS filed an application seeking Commission
consent to the divestiture of spectrum in the Beaumont, TX
6. On December 20, 2001, WTB referred this matter to
the Enforcement Bureau for investigation. On January 30,
2002, in response to a Bureau request, AWS submitted a
Spectrum Cap Report to the Enforcement Bureau, documenting
the attribution of spectrum to AWS in excess of the
Commission's aggregation limits.
7. For the purposes of this Consent Decree the
following definitions shall apply:
(a) ``Commission'' or ``FCC'' means the Federal
(b) ``Bureau'' means the Enforcement Bureau of
the Federal Communications Commission.
(c) ``WTB'' means the Wireless Telecommunications
Bureau of the Federal Communications
(d) ``AWS'' means AT&T Wireless Services, Inc.
and any subsidiaries.
(e) ``Parties'' means AWS and the Bureau.
(f) ``Adopting Order'' means an Order of the
Bureau adopting the terms and conditions of
this Consent Decree.
(g) ``Effective Date'' means the date on which
the Bureau releases the Adopting Order.
(h) ``Investigation'' means the investigation
initiated by the Bureau after referral from
WTB on December 20, 2001 regarding AWS's
compliance with 47 C.F.R. § 20.6.
8. AWS agrees that the Bureau has jurisdiction over
the matters contained in this Consent Decree and the
authority to enter into and adopt this Consent Decree.
9. AWS agrees that it shall make a voluntary
contribution to the United States Treasury in the amount of
$150,000 (one hundred fifty thousand dollars) within ten
calendar days of the date on which the Adopting Order is
10. AWS agrees to implement, within 20 calendar days
after the Bureau releases the Adopting Order, an internal
Compliance Plan, a summary of which is attached hereto and
incorporated by reference, to ensure AWS's future compliance
with the Commission's spectrum cap rules. AWS's obligations
under the Compliance Plan shall continue for so long as the
Commission's spectrum cap rules remain in place.
11. In express reliance upon the covenants and
representations contained in this Consent Decree, the Bureau
agrees to terminate its Investigation into the matters
discussed in paragraphs 2-6, above, without any finding of
liability on the part of AWS.
12. The Bureau agrees that, based on the facts
developed in this Investigation and in the absence of
material new evidence related to this matter, it will not
use the facts developed in this Investigation through the
effective date of the Consent Decree or the existence of
this Consent Decree to institute, on its own motion, any new
proceeding, formal or informal, or take any action on its
own motion against AWS concerning the matters that were the
subject of the Investigation. The Bureau also agrees that,
based on the facts developed in the Investigation, and in
the absence of material new evidence related to this matter,
it will not use the facts developed in this Investigation
through the effective date of this Consent Decree or the
existence of this Consent Decree to institute on its own
motion any proceeding, formal or informal, or take any
action on its own motion against AWS with respect to its
basic qualifications, including its character
qualifications, to be a Commission licensee or with respect
to compliance with the Commission's rules and policies.
13. Nothing in this Consent Decree shall prevent the
Commission from adjudicating complaints filed pursuant to
section 208 of the Communications Act, as amended, 47 U.S.C.
§ 208, against AWS or its affiliates for alleged violations
of Section 20.6 of the Commission's rules, or for any other
type of alleged misconduct, regardless of when such
misconduct took place. If any such complaint is made, the
Commission's adjudication of that complaint will be based
solely on the record developed in that proceeding. Nothing
in this Consent Decree shall prevent the Commission from
instituting new investigations or enforcement proceedings
against AWS pursuant to sections 4(i), 403 and 503 of the
Communications Act in the event of any alleged future
14. In the event that AWS is found by the Commission
or its delegated authority to have engaged in a violation of
Section 20.6 of the Commission's rules subsequent to the
release of the Adopting Order, AWS agrees that the conduct
described in paragraphs 2 - 6 above, may be considered by
the Commission or its delegated authority in determining an
15. AWS waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal
or stay, or to otherwise challenge or contest the validity
of this Consent Decree and the Adopting Order, provided the
Order adopts the Consent Decree without change, addition, or
16. AWS waives any rights it may have under any
provision of the Equal Access to Justice Act, 5 U.S.C. §
17. In the event that this Consent Decree is rendered
invalid by any court of competent jurisdiction, this Consent
Decree shall become null and void and may not be used in any
manner in any legal proceeding.
18. If either Party (or the United States on behalf of
the Commission) brings a judicial action to enforce the
terms of the Adopting Order, neither AWS nor the Commission
shall contest the validity of the Consent Decree or the
Adopting Order, and AWS and the Commission will waive any
statutory right to a trial de novo with respect to any
matter upon which the Adopting Order is based, and shall
consent to a judgment incorporating the terms of this
19. The Bureau and AWS agree that this Consent Decree
does not constitute either an adjudication on the merits or
a factual or legal finding or determination regarding any
compliance or noncompliance with the requirements of the
Commission's rules, including Section 20.6. The parties
agree that this Consent Decree is for settlement purposes
only and that by agreeing to this Consent Decree, AWS does
not admit or deny any liability for violating Commission
rules in connection with the matters that are the subject of
this Consent Decree.
20. AWS agrees that any violation of the Consent
Decree or the Adopting Order will constitute a separate
violation of a Commission order, entitling the Commission to
exercise any rights or remedies attendant to the enforcement
of a Commission order.
21. This Consent Decree may be signed in counterparts.
For the Enforcement Bureau For AT&T Wireless
Federal Communications Commission
David H. Solomon Douglas I. Brandon
Chief Vice President
SPECTRUM CAP COMPLIANCE PLAN OF
AT&T WIRELESS SERVICES, INC.
To better ensure compliance with the spectrum cap
requirements set forth in Section 20.6 of the Commission's
Rules, AT&T Wireless Services, Inc. (``AWS'') will establish
a formal compliance program that will continue for as long
as the spectrum cap rule remains in place. The Compliance
Program will consist of the following:
1. Within twenty (20) days after the Bureau adopts an
order approving the Consent Decree, AWS will appoint a
Spectrum Cap Compliance Officer (``Officer''), who
will, on a continuing basis, administer the spectrum
cap compliance program set forth herein.
2. Within thirty (30) days of appointment, the
Officer will establish and maintain a database of all
active licenses held by AWS and related information
(including market designation and amount of spectrum
held), and shall review this database at least every
thirty (30) days to ensure it is kept up to date.
3. Within thirty (30) days of appointment, the
Officer will implement an education program for a
targeted audience of company personnel who are involved
in mergers, acquisitions, divestitures, and other
transactions involving FCC licenses subject to the
spectrum cap. This education program will include
development of an on-line advisory about the spectrum
cap rule, including the associated attribution rules,
and a list of all companies in which AWS has an
attributable interest for purposes of the spectrum cap.
4. Upon appointment of the Officer, AWS will
institute a requirement that company personnel involved
in mergers, acquisitions, divestitures, and other
transactions involving FCC licenses subject to the
spectrum cap confer with the Officer or another
employee designated by the Officer before completing
5. Within thirty (30) days of appointment, the
Officer will use his or her best efforts to obtain a
list of all active licenses held by entities in which
AWS has an attributable interest for spectrum cap
purposes and related information (including market
designation and amount of spectrum held), and add that
information to the database described above. The
Officer will also use his or her best efforts to ensure
that these entities keep AWS advised of any relevant
changes to the information provided.
6. Within thirty (30) days of appointment of the
Officer, AWS will send a notice to all entities in
which AWS has an attributable interest for spectrum cap
purposes alerting them to the need to advise AWS in
writing before entering into transactions involving FCC
licenses subject to the spectrum cap. The notice will
further state that the companies must provide
sufficient time for AWS to review the relevant
documentation, and for a restructuring of the
transaction in the event that AWS determines that the
transaction will result in a violation of spectrum cap
7. AWS will provide written notice by hand delivery
and facsimile to the Chief, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W. Room
7-C723, Washington, DC, 20554, facsimile (202) 418-2810
within ten (10) days of the discovery of any AWS
spectrum attribution interest in excess of the spectrum
aggregations limit contained in Section 20.6 of the
1 47 C.F.R. § 20.6.
2 See Public Notice, TeleCorp PCS, Inc. and AT&T Wireless
Services, Inc. Seek FCC Consent To Transfer Control of
Licenses, WT Dkt. No. 01-315, DA 01-2608 (November 8, 2001);
see also Applications for Assignments of Authorization and
Transfer of Control, WTB File Nos. 0000634714 (BTA102,
BTA384), 0000634728 (BTA315, BTA449), 0000634722 (BTA052,
BTA098, BTA263, BTA273, BTA338, BTA423) (October 19, 2001).
3 See Public Notice, Wireless Telecommunications Bureau and
international Bureau Grant Consent for Transfer of Control
or assignment of Licenses from TeleCorp PCS, Inc. to AT&T
Wireless Services, Inc., at 4-5 (February 12, 2002).
4 Assignment Application, TeleCorp Holding Corp. II, LLC and
David Michelman, Trustee, Beaumont-Port Arthur BTA, File No.
0000934411 (filed June 21, 2002).