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                           1.   Before the
                Federal Communications Commission
                     Washington, D.C. 20554

In the Matter of                 )
NET-TEL CORPORATION              )    File No. EB-01-IH-0017k
                                )    NAL/Acct. No. 200132080042


   Adopted:  February 19, 2003          Released:   February  21, 

By the Chief, Enforcement Bureau:

                        I.   INTRODUCTION

In this Order, we cancel a  monetary forfeiture in the amount  of 
$6,000 proposed against Net-Tel Corporation (``Net-Tel'') for its 
apparent  willful  violation  of  47  C.F.R.    52.15(f),  which 
requires  certain  carriers  to  report  number  utilization  and 
forecast data. 

                         II.       BACKGROUND

On April 24, 2001, the Chief, Enforcement Bureau, acting pursuant 
to delegated authority, issued a Notice of Apparent Liability for 
Forfeiture (``NAL'') to Net-Tel, proposing a $6,000  forfeiture.1 
We issued the NAL because it appeared that Net-Tel had failed  to 
report on its actual and forecast number usage by filing FCC Form 
502,  the  North  American  Numbering  Plan  Numbering   Resource 
Utilization/Forecast (``NRUF'') Report that was due on  September 
15, 2000.2  Carriers are  required to  report for  each  separate 
legal  entity  represented   by  an   Operating  Company   Number 
(``OCN'').3  It  appeared that  Net-Tel failed  to file  an  NRUF 
report for  seven OCNs,  which were  referenced in  our NAL.   We 
therefore determined that Net-Tel had apparently violated section 
52.15(f) of the Commission's rules, which requires U.S.  carriers 
receiving numbering resources from  the North American  Numbering 
Plan  Administrator  (``NANPA''),  a  Pooling  Administrator,  or 
another telecommunications  carrier,  to report  semiannually  on 
their actual and forecast number usage.4

Wendell W. Webster, the Trustee appointed in Net-Tel's bankruptcy 
(Trustee), filed a response to the NAL.  The Trustee reports that 
Net-Tel filed for Chapter  11 bankruptcy protection on  September 
28, 2000, and that this proceeding was converted to a liquidation 
under Chapter 7 on October  23, 2000.5  In addition, the  Trustee 
reports that Net-Tel's operation  was terminated on December  20, 
2000, and  that  effective  April  30,  2001,  all  of  Net-Tel's 
operating  assets   were   sold.   The   Trustee   asserts   that 
cancellation of  the  forfeiture  based on  Net-Tel's  Chapter  7 
bankruptcy is consistent with precedent and will serve the public 
interest by protecting Net-Tel's  creditors and the  distribution 
of estate assets. 

                       III.    DISCUSSION

The NAL  states  that the  proposed  forfeiture was  assessed  in 
accordance with applicable statutory provisions, the Commission's 
rules  and  the  Commission's  Forfeiture  Guidelines.6   Section 
503(b) of the Act requires that, in examining Net-Tel's response, 
we take  into  account  the  nature,  circumstances,  extent  and 
gravity of the violation, and, with respect to the violator,  the 
degree of culpability, any history of prior offenses, ability  to 
pay, and other such matters as justice may require.7 We find that 
rescission of the forfeiture  is warranted in  light of the  Net-
Tel's  Chapter  7   liquidation  and  the   termination  of   its 
operations.8  The appointment of the trustee removed Net-Tel from 
any involvement in  the dissolution of  its business  operations.  
Moreover, the sale  of Net-Tel's  assets has  been completed  and 
Net-Tel will no longer operate  as a common carrier.  Based  upon 
these circumstances, we find that it is in the public interest to 
rescind the forfeiture against Net-Tel.9  

However, we emphasize that our decision to rescind the forfeiture 
in no  way  exonerates  Net-Tel  for  its  violation  of  section 
52.15(f).  The  Commission has  the discretion  to evaluate  each 
case based  upon the  facts and  circumstances presented  and  to 
issue a  forfeiture  regardless of  whether  or not  there  is  a 
bankruptcy.10  Thus,  a carrier's  bankruptcy will  not  preclude 
scrutiny of  its compliance  with the  Act and  the  Commission's 
rules, and we will take enforcement action where appropriate.  

                    IV.     ORDERING CLAUSES

Accordingly, IT IS ORDERED THAT, pursuant to 47 U.S.C.   504(b), 
and 47  C.F.R.   1.80(f)(4), the  Notice of  Apparent  Liability 
issued to Net-Tel Corporation IS CANCELLED.

 IT IS FURTHER ORDERED that a copy of this Memorandum Opinion and 
Order shall be sent by Certified  Mail/Return Receipt  Requested, 
to Trustee Wendel W. Webster,  c/o Linda Correia, Esq.,  Webster, 
Fredrickson  &  Brackshaw,  1819  H  Street,  N.W.,  Suite   300, 
Washington, DC  20006.    




                         David H. Solomon
                         Chief, Enforcement Bureau


1  See Net-Tel Corporation, 16 FCC Rcd 8635 (EB 2001). 

2  The NRUF reports are  due on or before  February 1 and on  or 
before August  1 of  each year.   See 47  C.F.R.   52.15(f)(6).  
However, we note that the deadline for filing reports due August 
1, 2000 was extended to  September 15, 2000. Numbering  Resource 
Optimization, CC Docket No. 99-200, 15 FCC Rcd 17005 (2000).     

3  See 47 C.F.R.   52.15(f)(3)(ii).   See  also, NRO Order,  15 
FCC Rcd at 7594; NRO Recon. Order, 15 FCC Rcd at 353-54. 

4  Numbering Resource Optimization, Report and Order and Further 
Notice of Proposed Rulemaking  in CC Docket  No. 99-200, 15  FCC 
Rcd 7574  (2000)(``NRO  Order''); recon.  and  clarification  in 
part, Second Report  and Order, Order  on Reconsideration in  CC 
Docket 96-98 and CC Docket 99-200, and Second Further Notice  of 
Proposed Rulemaking  in  CC Docket  99-200,  16 FCC  Rcd  306  ( 
2000)(``NRO Recon. Order'').

5  Net-Tel filed for bankruptcy protection in the United  States 
Bankruptcy Court for the District of Columbia, Case No. 00-1771. 

6  47  U.S.C.   503(b);  47  C.F.R.   1.80;  The  Commission's 
Forfeiture Policy Statement and Amendment of Section 1.80 of the 
Rules to Incorporate the Forfeiture Guidelines, 12 FCC Rcd 17087 
(1997),  recon.  denied,  15  FCC  Rcd  303  (1999)(``Forfeiture 
Guidelines'')(codified at 47 C.F.R.  1.80(b)(4) Note).

7   47 U.S.C.  503(b)(2)(D).

8   See,  e.g., Dennis  Elam, Trustee  for Bakcor  Broadcasting, 
Inc., Debtor, 11 FCC Rcd 1137 (1996)(forfeiture rescinded  after 
bankruptcy trustee was appointed and the violator was no  longer 
associated with the subject stations);  Interstate Savings, Inc. 
d/b/a   ISI   Telecommunications,   12   FCC   Rcd   2934   (CCB 
1997)(forfeiture rescinded where trustee appointed in Chapter  7 
liquidation removing violator from operating as a common carrier 
and from  involvement  in  dissolution or  distribution  of  its 
assets.  Requiring trustee to pay the forfeiture would  diminish 
estate assets  available  to  innocent creditors  and  serve  no 
public interest).  

9  Interstate Savings, 12 FCC Rcd at 2936.

10  Coleman Enterprises, Inc., d/b/a Local Long Distance, 16 FCC 
10016 (2001).