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

In the Matter of                        )
                              )    File No. EB-02-IH-0757
                              )    
Globcom, Inc.                      )    NAL Acct. No. 
200332080015
d/b/a Globcom Global Communications          )
                              )
Apparent Liability for Forfeiture            )    FRN No. 
0009652801
                              )
                              )


                  NOTICE OF APPARENT LIABILITY 
                    FOR FORFEITURE AND ORDER


     Adopted:  September 26, 2003                 Released:  
September 30, 2003

By the Commission:

                        I.   INTRODUCTION 

     1.   In this Notice of Apparent Liability for Forfeiture 
(``NAL'') and Order, we find that Globcom, Inc. (``Globcom''), 
apparently violated section 254(d) of the Communications Act of 
1934, as amended (the ``Act''), 1 and sections 54.706(a) and 
64.604(c)(5)(iii)(A) of the Commission's rules2 by willfully and 
repeatedly failing to contribute to the Universal Service Fund 
and the Telecommunications Relay Service (``TRS'') Fund.  We also 
find that Globcom apparently violated section 54.711(a) of the 
Commission's rules by willfully and repeatedly failing to file 
complete and accurate interstate and international revenue 
information.3  Based on our review of the facts and circumstances 
surrounding this matter, we find that Globcom is apparently 
liable for a total forfeiture of $806,861.  We further order 
Globcom to submit within 30 days, either as part of a response to 
this NAL or separately, a report, supported by a sworn statement 
or declaration under penalty of perjury of a corporate officer, 
stating its plan to come into compliance with the relevant 
payment and reporting rules discussed herein.

                         II.  BACKGROUND

     2.   The Telecommunications Act of 19964 codified the 
Commission's historical commitment to promote universal service 
to ensure that consumers in all regions of the nation have access 
to affordable, quality telecommunications services.  Section 254 
of the Act governs the assessment and recovery of universal 
service contributions.  Section 254(d) provides that ``[e]very 
telecommunications carrier that provides interstate 
telecommunications services shall contribute, on an equitable and 
nondiscriminatory basis, to the specific, predictable, and 
sufficient mechanisms established by the Commission to preserve 
and advance universal service.''5  Consistent with this mandate, 
for the period covered by this NAL, the Commission assessed 
contributions on every qualifying carrier based on the carrier's 
gross billed end-user telecommunications revenues.6  Under the 
Commission's rules, all telecommunications carriers that provided 
interstate telecommunications services and certain other 
providers of interstate telecommunications contributed to the 
Universal Service Fund based on their gross billed interstate and 
international end-user telecommunications revenues.7  The 
Commission has authorized the Universal Service Administrative 
Company (``USAC'') to administer the universal service support 
mechanisms and to perform billing and collection functions.8  

     3.   Title IV of the Americans with Disabilities Act of 
1990, codified at 47 U.S.C.  225, directs the Commission to 
ensure that interstate and intrastate telecommunications relay 
services are available, to the extent possible and in the most 
efficient manner, to hearing-impaired and speech impaired 
individuals in the United States.9  The Commission established 
the TRS Fund, currently administered by the National Exchange 
Carrier Association (``NECA''), to reimburse TRS providers for 
the costs of providing interstate TRS. 10  TRS enables persons 
with hearing and speech disabilities to communicate by telephone 
with persons who may or may not have such disabilities.  TRS 
provides telephone access to a significant number of Americans 
who, without it, might not be able to make or receive calls from 
others.11  Pursuant to section 64.604 of the Commission's rules, 
every carrier providing interstate telecommunications services 
must contribute to the TRS fund.12  NECA invoices common carriers 
each year for their contribution based on their interstate 
revenues.13  

     4.   USAC distributes, receives, and processes the 
Telecommunications Reporting Worksheet, which sets forth the 
information that carriers must submit so that the administrators 
of the Universal Service Fund and the Telecommunications Relay 
Service Fund may calculate and assess contributions.14  Prior to 
March 14, 2001, the Commission required carriers to file 
Telecommunications Reporting Worksheets twice each year for the 
purpose of determining their contributions.15  Carriers were 
required to file revenues for January through June by September 1 
of each year and to file revenues for the entire calendar year by 
the following April.16  Beginning March 14, 2001, the Commission 
modified its reporting requirements to require carriers to file 
not only an Annual Worksheet,17 but also to file a 
Telecommunications Reporting Worksheet each quarter with their 
interstate and international revenues from the previous period 
(``Quarterly Worksheets'').18  A carrier's failure to file the 
worksheets or submission of inaccurate or untruthful information 
``may subject the contributor to the enforcement provisions of 
the Act and any other applicable law.''19

     5.   USAC uses the revenue information provided on the 
Quarterly Worksheets to determine each carrier's universal 
service contribution on a quarterly basis, with a yearly true-up 
using the Annual Worksheet.20  USAC then bills carriers each 
month, based on their quarterly contribution amount.21  Carriers 
must pay their contribution by the date shown on the invoices.22  
As with the filing requirement, a carrier's failure to submit its 
contributions may subject the carrier to the enforcement 
provisions of the Act and any other applicable law.23 

     6.   The Commission has identified the unacceptable 
consequences of carriers' failure to meet their universal service 
obligations:

     First, delinquent  carriers  deprive  the  universal 
     service support mechanisms of the funds necessary to 
     carry out  the  goals  of this  important  statutory 
     program.  The  support  mechanisms  cannot be  fully 
     effective if, because of carrier delinquencies, they 
     are only partially  funded.  Second,  by withholding 
     their   universal   service   payments,   delinquent 
     carriers likely enjoy  a competitive  advantage over 
     those carriers that are  complying with the  law and 
     our regulations  and  making  their  payments  on  a 
     timely basis.  We view contribution to the universal 
     service support mechanisms as the  obligation of all 
     responsible  carriers,  and   we  will   not  permit 
     carriers  to  shirk  their  responsibilities  in  an 
     attempt to gain an advantage  over their law-abiding 
     competitors.24

The Commission has repeatedly warned carriers that attempts to 
evade these important responsibilities will result in enforcement 
action against them.25  Similar considerations are applicable to 
a carrier's failure to contribute to the TRS fund.

     7.   Globcom, which does business as Globcom Global 
Communications, is an interexchange carrier headquartered in 
Northbrook, Illinois that provides resale telecommunications 
services to consumers.26  Globcom has only filed two Quarterly 
Worksheets out of the last ten quarters since the requirement 
went into effect.27  The company has filed Annual Worksheets for 
two of the last three years.  In its 2001 Annual Worksheet, filed 
May 7, 2002, Globcom stated that its long distance revenues for 
year 2000 were $5,835,818.28  In its 2002 Annual Worksheet, filed 
August 6, 2002, Globcom initially stated that its interstate and 
international revenues for year 2001 were $187,343.29  On October 
10, 2002, Globcom refiled its 2002 Annual Worksheet and restated 
2001 revenue as $5,187,343.30  USAC has not received Globcom's 
2003 Annual Worksheet with its 2002 revenues, although it was due 
on April 1, 2003.

     8.   For the period in question, the Commission's rules 
based a carrier's universal service contributions on the 
carrier's interstate and international revenue during the 
previous year.31  Thus, USAC based Globcom's universal service 
contributions for 2001 on Globcom's reported revenues for 2000.  
Similarly, USAC based Globcom's obligations for 2002 on Globcom's 
reported 2001 revenues.

     9.   According to USAC's records, Globcom has never paid its 
universal service contributions.  Currently, Globcom is past due 
on $681,837.76 in universal service-related charges, fees, and 
adjustments.  This amount represents Globcom's unpaid balances 
for 2001 and 2002, as well as current monthly billings for 2003 
and various fees and adjustments.  USAC has sent Globcom monthly 
invoices reflecting Globcom's past due balances and current 
charges without any response from Globcom.32 

     10.  Globcom has also failed to pay its November 3, 2002 and 
July 7, 2003 interstate Telecommunications Relay Service 
(``TRS'') Fund contributions.33  According to NECA records, 
Globcom has not paid its last two invoices for contributions to 
the TRS fund.34  

     11.  After receiving information that Globcom had not paid 
its universal service contributions or filed its worksheets, and 
that the company may have inaccurately reported its revenue 
information on its Annual Worksheets, the Enforcement Bureau 
(``Bureau'') issued a Letter of Inquiry (``LOI'') to Globcom 
requesting information relating to Globcom's universal service 
contributions and its reporting of income.35  Globcom initially 
failed to respond, but after the Bureau advised Globcom that its 
failure to respond to the LOI placed it at risk of enforcement 
action,36 Globcom provided responses on March 14 and April 16, 
2003.37
                         III. DISCUSSION

     12.  Under section 503(b)(1) of the Act, any person who is 
determined by the Commission to have willfully or repeatedly 
failed to comply with any provision of the Act or any rule, 
regulation, or order issued by the Commission shall be liable to 
the United States for a forfeiture penalty.38  In order to impose 
such a forfeiture penalty, the Commission must issue a notice of 
apparent liability, the notice must be received, and the person 
against whom the notice has been issued must have an opportunity 
to show, in writing, why no such forfeiture penalty should be 
imposed.39  The Commission will then issue a forfeiture if it 
finds by a preponderance of the evidence that the person has 
willfully or repeatedly violated the Act or a Commission rule.40  
As we set forth in greater detail below, we conclude under this 
standard that Globcom is liable for a forfeiture in the amount of 
$806,861 for its apparent willful and repeated violations of 
section 254(d) of the Act and sections 54.706(a), 54.711(a), and 
64.604 of the Commission's rules.

     13.  The fundamental issues in this case are whether Globcom 
apparently violated the Act and the Commission's rules by (1) 
willfully or repeatedly failing to pay its required universal 
service fund contributions and interstate TRS fund contributions; 
(2) willfully or repeatedly underreporting the interstate and 
international revenues that form the basis for its universal 
service and TRS fund contribution obligations; and (3) willfully 
or repeatedly failing to file its Annual and Quarterly 
Worksheets.  As discussed below, we answer all three questions 
affirmatively.  Based on a preponderance of the evidence, we 
therefore conclude that Globcom is apparently liable for a 
forfeiture of $806,861 for apparently willfully and repeatedly 
violating section 254 of the Act and sections 54.706, 54.711, and 
64.604 of the Commission's rules.41  We also admonish Globcom for 
its violations of these requirements beyond the one-year statute 
of limitations.

     A.   Globcom Apparently Has Willfully And Repeatedly 
       Failed To Pay Its Universal Service Contributions.

     14.  Section 254(d) of the Act requires that interstate 
telecommunications carriers ``contribute . . .  to the specific, 
predictable, and sufficient mechanisms established by the 
Commission to preserve and advance universal service.''42  The 
Commission has implemented section 254(d) at section 54.706 of 
its rules, which states, in relevant part, ``every 
telecommunications carrier that provides interstate 
telecommunications services ... shall contribute to the federal 
universal service support mechanisms on the basis of its 
interstate and international end-user telecommunications 
revenues, net of prior period actual contributions.''43  Section 
54.713 of the Commission's rules cautions that a carrier's 
failure to submit its contributions ``may subject the contributor 
to the enforcement provisions of the Act and any other applicable 
law.''44

     15.  As a reseller of interstate and international long-
distance services, Globcom is subject to the obligations of 
section 254 and section 54.706(b).45  Globcom states that it 
``has contributed to the universal service fund''46 but does not 
identify either the amounts or dates of these alleged 
contributions.47  USAC has sent numerous invoices and past due 
notices to Globcom informing it of its universal service 
obligations.48  As of  August 15, 2003, however, USAC's records 
show that Globcom has not made a single payment on its debt and 
to date owes $681,837.76 in universal service contributions and 
fees for 2001, 2002, and 2003.49  Thus, for over two and a half 
years, it appears that Globcom has failed to meet its clear 
statutory obligations.  

     16.  Carriers must pay their universal service contributions 
on a monthly basis.50  Thus, each month that Globcom failed to 
make its universal service contribution constitutes a separate 
violation of the Commission's rules.51  Globcom therefore 
apparently violated 47 U.S.C. 254(d) and 47 C.F.R. 54.706 
each month since January 2001 by failing to pay into the fund.  
Based on this evidence, we find that Globcom apparently has 
willfully and repeatedly failed to make its required 
contributions in violation of section 254(d) of the Act and 
section 54.706 of the Commission's rules. 

     B.   Globcom Apparently Has Willfully And Repeatedly 
       Failed To Pay Its Telecommunications Relay Services 
       Contributions

     17.  As noted above, TRS allow individuals with hearing or 
speech disabilities to use interstate and intrastate 
telecommunications services.  Section 64.604 of the Commission's 
rules requires every carrier providing interstate 
telecommunications services to contribute to the interstate TRS 
fund on the basis of interstate end-user telecommunications 
revenues.52  Carriers' contributions are based upon the same 
Telecommunications Reporting Worksheet used for calculating 
universal service contributions.53  Each carrier must contribute 
at least $25 per year; carriers whose annual contributions are 
less than $1200 must pay the entire amount at the beginning of 
the contribution period.54  Otherwise, carriers may divide their 
contributions into equal monthly payments.55   Carriers must make 
their TRS contributions on at least an annual basis.  Thus, 
Globcom apparently violated the Commission's rules each time it 
failed to make its annual contributions in 2002 and 2003.  

     18.  According to NECA's records, Globcom has a past due 
balance for 2002 of $4,000.00, as well as a past due balance for 
2003 of $7,729.14.  Globcom's overdue balance therefore is 
$11,729.14, plus late payment charges, for a total of 
$11,885.18.56  Based on this evidence, we find that Globcom 
apparently has willfully and repeatedly failed to make its 
required contribution to the TRS fund in violation of section 
64.604 of the Commission's rules.

     C.   Globcom Apparently Has Willfully and Repeatedly 
       Failed To File Accurate Revenue Information 

     19.  Pursuant to section 54.711 of the Commission's rules, 
carriers must file on a quarterly and annual basis complete and 
accurate Telecommunications Reporting Worksheets. 57  Among other 
information, the worksheets contain the carriers' interstate and 
international revenues, which are the basis for the carriers' 
universal service contributions, as well as their TRS fund 
contributions.  In Globcom's 2001 Annual Worksheet, the company 
stated that its long distance revenues during 2000 were 
$5,835,818.58  In its 2002 filing, Globcom initially stated that 
its interstate and international revenues for 2001 were $187,343.  
Following informal Commission staff inquiries about the dramatic 
dip in revenue from 2000 to 2001, Globcom amended its Annual 
Worksheet to state that it had $5,187,343 in interstate and 
international revenues in 2001.59  

     20.  Globcom's responses to the LOI, however, contradict 
these figures.  Globcom concedes that its actual combined 
interstate and international revenues for 2000 and 2001 were 
$7,931,497 and $21,099,070, respectively.60  Thus, Globcom 
appears to have repeatedly understated its revenues on both its 
2001 and 2002 Annual Worksheets, potentially by more than $2 
million for 2000,61 and by more than $16 million in 2001.62  
Based on this evidence, we find that Globcom has apparently 
violated section 54.711 of the Commission's rules by willfully 
and repeatedly underreporting its interstate and international 
revenues on its Annual Worksheets.63

     D.Globcom Apparently Has Willfully And Repeatedly Failed To 
       File Its Annual And Quarterly Worksheets

     21.  As noted above, the Commission requires carriers to 
file Annual and Quarterly Worksheets with USAC.64  With the 
exception of the apparently incorrect Annual Worksheets for 2001 
and 2002, and two Quarterly Worksheets,65  USAC has no record of 
any other revenue filings by Globcom.  Nor has Globcom provided 
us with any evidence that it filed the required information.66  
In addition, Globcom has failed to file its Annual Worksheet for 
2003, which was due April 1, 2003.  Thus, since 2001, Globcom 
apparently has violated the filing requirements of the 
Commission's rules a total of nine times.67  Based on a 
preponderance of the evidence, we conclude that Globcom 
apparently has violated section 54.711 of the Commission's rules 
by willfully and repeatedly failing to file its revenue 
information.  

     1.a.B.     Proposed Action

          1.   Proposed Forfeiture Amount

     22.  Section 503(b)(2)(B) of the Act authorizes the 
Commission to assess a forfeiture of up to $120,000 for each 
violation or each day of a continuing violation, up to a 
statutory maximum of $1,200,000 for a single act or failure to 
act.68  In determining the appropriate forfeiture amount, we 
consider the factors enumerated in section 503(b)(2)(D) of the 
Act, including ``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 
such other matters as justice may require.''

     23.  Under section 503(b)(6) of the Act, we may only propose 
forfeitures for apparent violations that accrued within one year 
of the date of this NAL.69  Nevertheless, section 503 does not 
prohibit us from assessing whether Globcom's conduct prior to 
that date apparently violated the Act or our rules and we may 
consider Globcom's other violations in determining the 
appropriate forfeiture amount for those violations within the 
statute of limitations.70  Therefore, although we find that 
Globcom apparently violated the Act and our rules in multiple 
years, we discuss forfeitures here for only the last year of 
violations.  We admonish Globcom for the violations that occurred 
beyond the statute of limitations.

     24.  Based on the facts above, it appears that Globcom 
deliberately chose not to pay its universal service contributions 
each month for revenues derived from January 1, 2001 to the 
present.  Despite Globcom's clear obligations under our universal 
service rules, and despite numerous monthly communications from 
USAC informing the carrier of its increasing debt, Globcom has 
done nothing to address this matter.71  

     25.  Previously, even in cases of longstanding failures to 
pay universal service contributions, we assessed forfeitures on 
only a portion of the violations.  Thus, in ConQuest, we assessed 
a forfeiture only for a single month of nonpayment, even though 
the carrier had been delinquent for more than eight months.72  We 
warned, however, that ``in light of the accumulating record of 
non-compliance, we are prepared to impose substantially greater 
forfeitures in the future,'' and explicitly noted that ``our 
future notices likely will cover greater periods of non-payment 
than a single month....''73  Approximately one year later, we 
assessed forfeitures for two months of nonpayment.74  In 
addition, we have repeatedly stated that we are prepared to take 
even stronger action against delinquent carriers, including 
substantially higher forfeitures and revocation of carriers' 
operating authority.75  More than three years have passed since 
the ConQuest decision, and the time has come to implement a 
substantially greater forfeiture amount in order to deter 
carriers from violating our universal service contribution and 
reporting rules.   

     26.  The present case clearly demonstrates that our prior 
method of assessing forfeitures has not adequately deterred 
carriers from violating our universal service contribution and 
reporting rules.  Such conduct concerns us greatly, particularly 
in view of the clear state of the law and our repeated warnings 
that we intend to exercise our enforcement authority to the 
fullest extent of that law.  Carrier nonpayment of universal 
service contributions undermines the efficiency and effectiveness 
of the universal service support mechanisms.  Moreover, 
delinquent carriers may obtain a competitive advantage over 
carriers complying with the Act and our rules.  We consider 
universal service nonpayment to be a serious threat to a key goal 
of Congress and one of the Commission's primary responsibilities.  
Therefore, we are now increasing the number of months of 
nonpayment on which we assess the forfeiture amount .76  We will 
now propose substantial forfeitures for each of Globcom's 
universal service-related violations within the past year.77 

     27.  The proposed forfeiture against Globcom for nonpayment 
of its universal service contributions consists of two 
components.  First, applying the base forfeiture amount of 
$20,000 per violation for the previous twelve months of non-
payment results in a base figure of $240,000.78  Second, we add 
an amount equal to approximately one-half of the unpaid universal 
service contributions.79  As the Commission has observed, this 
component of the forfeiture ``illustrate[s] that a delinquent 
carrier's culpability and the consequential damage it causes to 
the goal of universal service may vary with the size of the 
contribution it fails to make.''80  As of August 15, 2003, 
Globcom owed $681,837 in universal service contributions and 
fees.  Adding half this amount ($340,918) to the base figure of 
$240,000 results in a proposed forfeiture of $580,918. 

     28.  In addition, it appears that Globcom deliberately chose 
not to pay its contributions to the TRS Fund.  Globcom paid the 
first invoice of $149.87, plus a late payment fee, but has not 
paid the November 3, 2002 and July 7, 2003 invoices.  The TRS 
fund depends on carriers' timely payment of contributions.  
Carriers that violate the contribution requirements undermine the 
TRS fund and may obtain an unfair advantage over their 
competitors.  

     29.  The Commission has not established a base forfeiture 
amount for failure to pay TRS fund contributions.  We find that 
this violation is similar to the failure to pay universal service 
contributions, for which the base forfeiture amount is $20,000.  
TRS fund contributions are, however, relatively smaller than 
carriers' universal service contributions.  Therefore, we 
conclude that the TRS fund nonpayment should have a base 
forfeiture amount of $10,000.  In addition, as we did for the 
universal service nonpayment, we are adding one-half the unpaid 
balance to the base forfeiture amount.  In this manner, as with 
forfeitures for universal service nonpayment, the forfeiture 
reflects the amount of the carrier's delinquency.  As described 
above, Globcom apparently violated our TRS contribution 
requirements twice within the last year, and currently owes 
$11,885.  Under our formula, we find that Globcom is liable for 
an additional proposed forfeiture of $25,943 for its apparent 
failure to make TRS contributions.81

     30.  We view Globcom's apparent submission of inaccurate 
revenue information and its failure to file its Quarterly and 
Annual Worksheets as similarly grave.  The size and scope of the 
universal service and TRS programs impose a monumental burden on 
the Commission, USAC, and NECA to verify that each and every 
carrier has complied with the revenue reporting requirements.  By 
necessity, the Commission and the other entities must rely on 
carriers' compliance with our rules.  Where a carrier ignores the 
statute, our rules, and repeated past due notices, it undermines 
the foundation of the universal service and TRS programs.

     31.  The Commission's Forfeiture Policy Statement and 
implementing rules establish $3,000 as the base forfeiture for 
failing to provide required forms or information.82  We find that 
a substantial upward adjustment is appropriate here, however, 
because Globcom's failure appears to have been egregious.83  The 
Commission's rules state that an ``officer of the contributor 
must certify to the truth and accuracy of the Telecommunications 
Worksheet....''84  Despite this safeguard, as explained above, 
the October 10, 2002 Annual Worksheet filed by Globcom 
understated the company's revenues by more than $16 million.  
Globcom has offered no explanation for this discrepancy, which is 
so dramatic that we cannot attribute it to inadvertence.  
Accordingly, applying the Forfeiture Policy Statement and the 
statutory factors listed above to the instant case, we conclude 
that Globcom is apparently liable for a $50,000 forfeiture for 
the inaccurate Annual Worksheet filed in October 2002.85  

     32.  With respect to Globcom's apparent failure to submit 
the Quarterly and Annual Worksheets, we find that a similar 
upward adjustment from the $3,000 base amount is appropriate.  
Even though the Commission had clear rules requiring carriers to 
provide revenue information on an annual and quarterly basis, 
Globcom has done so only intermittently for more than two years.  
Moreover, when it did submit information, it understated its 
interstate and international revenues.  Taking into account the 
factors listed in section 503(b)(2)(D) of the Act and Commission 
precedent, we find that Globcom is apparently liable for a 
$50,000 forfeiture for each of the three occasions it failed to 
file its revenue information within the past year, for a total 
forfeiture of $150,000.86

          C.a.1.  Admonishment

     33.  As noted above, we also admonish Globcom for its 
violations of our rules and the Act that occurred outside the 
one-year statute of limitations.  Although we propose forfeitures 
for Globcom's apparent violations within the last year, 
admonishment for violations beyond the statute of limitations is 
appropriate here to note the full scope and scale of Globcom's 
departure from our rules.

     34.  We therefore admonish Globcom for repeatedly violating 
section 254(d) of the Act and section 54.706(a) of our rules 
through its failure to pay any of its universal service debt each 
month going back to January 1, 2000.  We also admonish Globcom 
for its violations of section 54.711(a) of the Commission's rules 
through filing inaccurate Annual Worksheets in May and August of 
2002, and through failing to file Quarterly Worksheets going back 
to May 2001, when the Quarterly Worksheet requirement began.87

                         IV.  CONCLUSION

     35.  We conclude that Globcom is apparently liable for the 
following proposed forfeitures:  (1)$580,918 for failure to make 
timely universal service contributions; (2) $25,943 for failure 
to make timely TRS contributions; (3) $50,000 for its apparent 
failure to file complete and accurate revenue information on its 
Annual Worksheet; and (4) $150,000 for its apparent failure to 
file its 2003 Quarterly and Annual Worksheets.  In sum, we hold 
that Globcom is apparently liable for a total proposed forfeiture 
of $806,861.  We also admonish Globcom for violations beyond the 
statute of limitations; specifically, failing to pay its 
universal service contributions, and failing to file complete and 
accurate revenue information in its Annual and Quarterly 
Worksheets.

     36.  Future violations of the Commission's universal service 
rules and TRS rules will constitute additional violations 
subjecting Globcom to possible increased enforcement action.  
Such enforcement action could take the form of higher forfeitures 
and/or potential revocation of Globcom's operating authority, 
including disqualification of Globcom's principals from the 
provision of any interstate common carrier services without the 
prior consent of the Commission.88  In this regard, we order 
Globcom to submit within 30 days, either as part of a response to 
this NAL or separately, a report, supported by a sworn statement 
or declaration under penalty of perjury of a corporate officer, 
stating its plan to come into compliance with the relevant 
payment and reporting rules discussed here.

                      V.   ORDERING CLAUSES

     37.  ACCORDINGLY, IT IS ORDERED THAT, pursuant to section 
503(b) of the Communications Act of 1934, as amended, 47 U.S.C.  
503(b), and section 1.80 of the Commission's rules, 47 C.F.R.  
1.80, that Globcom, Inc. is hereby NOTIFIED of its APPARENT 
LIABILITY FOR A FORFEITURE in the amount of $806,861 for 
willfully and repeatedly violating the Act and the Commission's 
rules.

     38.  IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of 
the Commission's rules, 47 C.F.R.  1.80, within thirty days of 
the release date of this NOTICE OF APPARENT LIABILITY AND ORDER, 
Globcom, Inc. SHALL PAY the full amount of the proposed 
forfeiture currently outstanding on that date or shall file a 
written statement seeking reduction or cancellation of the 
proposed forfeiture.

     39.  IT IS FURTHER ORDERED THAT, pursuant to sections 4(i), 
219(b), and 254(d) of the Communications Act of 1934, as amended, 
47 U.S.C.  154(i), 219(b), and sections 54.706(a), 54.711(a), 
and 64.604(c)(5)(iii) of the Commission's rules, 47 C.F.R.  
54.706(a), 54.711(a), 64.604(c)(5)(iii), within thirty days of 
the release date of this NOTICE OF APPARENT LIABILITY AND ORDER, 
Globcom, Inc. SHALL SUBMIT a report, supported by a sworn 
statement or declaration under perjury of perjury by a corporate 
officer, stating its plan promptly to come into compliance with 
the universal service and Telecommunications Relay Service 
payment and reporting rules discussed herein.

     40.  Payment of the forfeiture may be made by check or 
similar instrument, payable to the order of the Federal 
Communications Commission.  Such remittance should be made to 
Forfeiture Collection Section, Finance Branch, Federal 
Communications Commission, P.O. Box 73482, Chicago, Illinois 
60673-7482.  The payment should note the NAL/Acct. No. referenced 
above and FRN No. 0009652801.

     41.  The response, if any, to this NOTICE OF APPARENT 
LIABILITY AND ORDER must be mailed to Maureen F. Del Duca, Chief, 
Investigations and Hearings Division, Enforcement Bureau, Federal 
Communications Commission, 445 12th Street, S.W., Washington, 
D.C.  20554 and must include the NAL/Acct. No. referenced above. 
The report discussed above should be mailed to Ms. Del Duca at 
the same address.

     42.  The Commission will not consider reducing or canceling 
a forfeiture in response to a claim of inability to pay unless 
the petitioner submits:  (1) federal tax returns for the most 
recent three-year period; (2) financial statements prepared 
according to generally accepted accounting practices (``GAAP''); 
or (3) some other reliable and objective documentation that 
accurately reflects the petitioner's current financial status.  
Any claim of inability to pay must specifically identify the 
basis for the claim by reference to the financial documentation 
submitted.

     43.  Requests for payment of the full amount of this NAL 
under an installment plan should be sent to Chief, Credit and 
Management Center, 445 12th Street, S.W., Washington, D.C.  
20554.89

     44.  Under the Small Business Paperwork Relief Act of 2002, 
Pub.L.No. 107-198, 116 Stat. 729 (June 28, 2002), the Commission 
is engaged in a two-year tracking process regarding the size of 
entities involved in forfeitures.  If you qualify as a small 
entity and if you wish to be treated as a small entity for 
tracking purposes, please so certify to us within 30 days of this 
NAL, either in your response to the NAL or in a separate filing 
to be sent to the Investigations and Hearings Division, 
Enforcement Bureau, 445 12th Street, S.W., Washington, D.C.  
20554.  Your certification should indicate whether you, including 
your parent entity and its subsidiaries, meet one of the 
definitions set forth in the list in Attachment A of this NAL.  
This information will be used for tracking purposes only.  Your 
response or failure to respond to this question will have no 
effect on your rights and responsibilities pursuant to section 
503(b) of the Communications Act.  If you have any questions 
regarding any of the information contained in Attachment A, 
please contact the Commission's Office of Communications Business 
Opportunities at (202) 418-0990.

     45.  IT IS FURTHER ORDERED that a copy of this NOTICE OF 
APPARENT LIABILITY AND ORDER shall be sent by certified mail, 
return receipt requested, to Glenn Kofman, Globcom, Inc., 2100 
Sanders Rd., Suite 150, Northbrook, IL 60047.


                         FEDERAL COMMUNICATIONS COMMISSION


                         Marlene H. Dortch
                         Secretary                         ATTACHMENT A


                FCC List of Small Entities

   As described below, a ``small entity'' may be a small 
                       organization,
  a small governmental jurisdiction, or a small business.

(1)  Small Organization 
Any not-for-profit enterprise that is independently owned 
and operated and 
is not dominant in its field.

  
(2)  Small Governmental Jurisdiction
Governments of cities, counties, towns, townships, villages, 
school districts, or 
special districts, with a population of less than fifty 
thousand.


(3)  Small Business
Any business concern that is independently owned and 
operated and 
is not dominant in its field, and meets the pertinent size 
criterion described below.
  

      Industry Type          Description of Small Business 
                                     Size Standards
                 Cable Services or Systems
                            Special Size Standard - 
Cable Systems                Small Cable Company has 400,000 
                            Subscribers Nationwide or Fewer
Cable and Other Program 
Distribution                     $12.5 Million in Annual 
                                    Receipts or Less

Open Video Systems 
       Common Carrier Services and Related Entities
Wireline Carriers and 
Service providers 
                                1,500 Employees or Fewer
Local Exchange Carriers, 
Competitive Access 
Providers, Interexchange 
Carriers, Operator Service 
Providers, Payphone 
Providers, and Resellers


Note:  With the exception of Cable Systems, all size 
standards are expressed in either millions of dollars or 
number of employees and are generally the average annual 
receipts or the average employment of a firm.  Directions 
for calculating average annual receipts and average 
employment of a firm can be found in 
13 CFR 121.104 and 13 CFR 121.106, respectively.





                  International Services
International Broadcast 
Stations






                                $12.5 Million in Annual 
                                    Receipts or Less
International Public Fixed 
Radio (Public and Control 
Stations)
Fixed Satellite 
Transmit/Receive Earth 
Stations
Fixed Satellite Very Small 
Aperture Terminal Systems
Mobile Satellite Earth 
Stations
Radio Determination 
Satellite Earth Stations
Geostationary Space Stations
Non-Geostationary Space 
Stations
Direct Broadcast Satellites
Home Satellite Dish Service
                    Mass Media Services
Television Services

                             $12 Million in Annual Receipts 
                                        or Less
Low Power Television 
Services and Television 
Translator Stations
TV Auxiliary, Special 
Broadcast and Other Program 
Distribution Services
Radio Services
                             $6 Million in Annual Receipts 
                                        or Less
Radio Auxiliary, Special 
Broadcast and Other Program 
Distribution Services
Multipoint Distribution      Auction Special Size Standard -
Service                      Small Business is less than 
                            $40M in annual gross revenues 
                            for three preceding years
          Wireless and Commercial Mobile Services
Cellular Licensees
                                1,500 Employees or Fewer
220 MHz Radio Service - 
Phase I Licensees
220 MHz Radio Service -      Auction special size standard -
Phase II Licensees           Small Business is average gross 
                            revenues of $15M or less for 
                            the preceding three years 
                            (includes affiliates and 
                            controlling principals)
                            Very Small Business is average 
                            gross revenues of $3M or less 
                            for the preceding three years 
                            (includes affiliates and 
                            controlling principals)
700 MHZ Guard Band Licensees


Private and Common Carrier 
Paging
Broadband Personal 
Communications Services          1,500 Employees or Fewer
(Blocks A, B, D, and E)
Broadband Personal           Auction special size standard -
Communications Services      Small Business is $40M or less 
(Block C)                    in annual gross revenues for 
                            three previous calendar years
                            Very Small Business is average 
                            gross revenues of $15M or less 
                            for the preceding three 
                            calendar years (includes 
                            affiliates and persons or 
                            entities that hold interest in 
                            such entity and their 
                            affiliates)
Broadband Personal 
Communications Services 
(Block F)
Narrowband Personal 
Communications Services


Rural Radiotelephone Service     1,500 Employees or Fewer
Air-Ground Radiotelephone 
Service
800 MHz Specialized Mobile   Auction special size standard -
Radio                        Small Business is $15M or less 
                            average annual gross revenues 
                            for three preceding calendar 
                            years
900 MHz Specialized Mobile 
Radio
Private Land Mobile Radio        1,500 Employees or Fewer
Amateur Radio Service                      N/A
Aviation and Marine Radio 
Service                          1,500 Employees or Fewer
Fixed Microwave Services
                            Small Business is 1,500 
Public Safety Radio Services employees or less
                            Small Government Entities has 
                            population of less than 50,000 
                            persons
Wireless Telephony and 
Paging and Messaging             1,500 Employees or Fewer
Personal Radio Services                    N/A
Offshore Radiotelephone          1,500 Employees or Fewer
Service
Wireless Communications      Small Business is $40M or less 
Services                     average annual gross revenues 
                            for three preceding years
                            Very Small Business is average 
                            gross revenues of $15M or less 
                            for the preceding three years 

39 GHz Service
                            Auction special size standard 
                            (1996) -
Multipoint Distribution      Small Business is $40M or less 
Service                      average annual gross revenues 
                            for three preceding calendar 
                            years
                            Prior to Auction -
                            Small Business has annual 
                            revenue of $12.5M or less
Multichannel Multipoint 
Distribution Service             $12.5 Million in Annual 
                                    Receipts or Less
Instructional Television 
Fixed Service
                            Auction special size standard 
                            (1998) -
Local Multipoint             Small Business is $40M or less 
Distribution Service         average annual gross revenues 
                            for three preceding years
                            Very Small Business is average 
                            gross revenues of $15M or less 
                            for the preceding three years 
                            First Auction special size 
                            standard (1994) -
                            Small Business is an entity 
                            that, together with its 
                            affiliates, has no more than a 
218-219 MHZ Service          $6M net worth and, after 
                            federal income taxes (excluding 
                            carryover losses) has no more 
                            than $2M in annual profits each 
                            year for the previous two years
                            New Standard - 
                            Small Business is average gross 
                            revenues of $15M or less for 
                            the preceding three years 
                            (includes affiliates and 
                            persons or entities that hold 
                            interest in such entity and 
                            their affiliates)
                            Very Small Business is average 
                            gross revenues of $3M or less 
                            for the preceding three years 
                            (includes affiliates and 
                            persons or entities that hold 
                            interest in such entity and 
                            their affiliates)
Satellite Master Antenna 
Television Systems               $12.5 Million in Annual 
                                    Receipts or Less
24 GHz - Incumbent Licensees     1,500 Employees or Fewer
24 GHz - Future Licensees    Small Business is average gross 
                            revenues of $15M or less for 
                            the preceding three years 
                            (includes affiliates and 
                            persons or entities that hold 
                            interest in such entity and 
                            their affiliates)
                            Very Small Business is average 
                            gross revenues of $3M or less 
                            for the preceding three years 
                            (includes affiliates and 
                            persons or entities that hold 
                            interest in such entity and 
                            their affiliates)
                       Miscellaneous
On-Line Information Services  $18 Million in Annual Receipts 
                                        or Less
Radio and Television 
Broadcasting and Wireless 
Communications Equipment          750 Employees or Fewer
Manufacturers
Audio and Video Equipment 
Manufacturers
Telephone Apparatus 
Manufacturers (Except            1,000 Employees or Fewer
Cellular)
Medical Implant Device            500 Employees or Fewer
Manufacturers
Hospitals                     $29 Million in Annual Receipts 
                                        or Less
Nursing Homes                    $11.5 Million in Annual 
                                    Receipts or Less
Hotels and Motels             $6 Million in Annual Receipts 
                                        or Less
Tower Owners                 (See Lessee's Type of Business)

_________________________

1 47 U.S.C.  254.  
2 47 C.F.R.  54.706(a); 64.604(c)(5)(iii)(A).
3 47 C.F.R.  54.711(a).
4 The Telecommunications Act of 1996 amended the Communications 
Act of 1934.  See Telecommunications Act of 1996, Pub. L. No. 
104-104, 110 Stat. 56 (1996).
5 47 U.S.C.  254(d).
6 See Federal-State Joint Board on Universal Service, Report and 
Order, 12 FCC Rcd 8776, 9206-07,  843-44 (1997) (subsequent 
history omitted).  As of April 1, 2003, carrier contributions are 
based on carriers projected, rather than historical, revenues.  
See infra note 31.
7 47 C.F.R.  54.706, 54.709.  
8 See Amendment of Parts 54 and 69 -- Changes to the Board of 
Directors of the National Exchange Carriers Association, Inc., 
Report and Order and Second Order on Reconsideration, 12 FCC Rcd 
18400, 18415,  25 (1997) (``NECA Changes Order''); 47 C.F.R. 
54.702(b).
9 Pub. L. No. 101-336,  401, 104 Stat. 327, 366-69 (1990) 
(adding section 225 to the Act).
10See Telecommunications Relay Services and the Americans with 
Disabilities Act of 1990, Third Report and Order, 8 FCC Rcd 5300, 
5301,  7 (1993) (TRS III Order).
11See Telecommunications Relay Services and Speech-to-Speech 
Services for Individuals with Hearing and Speech Disabilities, CC 
Docket No. 98-67, Report and Order, 15 FCC Red 5140, 5143,  5 
(2000).
12See 47 C.F.R.  64.604(c)(5)(iii).
13See Telecommunications Relay Services and Speech-to-Speech 
Services for Individuals with Hearing and Speech Disabilities, 
Report and Order, 15 FCC Rcd 5140, 5143,  5 (2000).
14NECA Changes Order, 12 FCC Rcd at 18442,  80.  
15See 1998 Biennial Regulatory Review -- Streamlined Contributor 
Reporting Requirements Associated with Administration of 
Telecommunications Relay Services, North American Numbering Plan, 
Local Number Portability, and Universal Service Support 
Mechanisms, Report and Order, 14 FCC Rcd 16602 (1999) 
(``Consolidated Reporting Order'').  The Consolidated Reporting 
Order established one form, the Telecommunications Reporting 
Worksheet, in lieu of separate reporting requirements for the 
interstate Telecommunications Relay Services Fund, federal 
universal service support mechanisms, administration of the North 
American Numbering Plan, and the shared costs of long-term local 
number portability.  Consolidated Reporting Order, 14 FCC Rcd at 
16609,  10.  The Commission also adopted a ``short form'' for 
September 1 Universal Service support mechanism filing.  Id. at 
16618-19,  33-34.
16Prior to March 14, 2001, the Commission required semi-annual, 
in addition to annual reporting.  Contributors were required to 
file revenues for January through June on September 1 of each 
year and annual revenues from the prior calendar year on April 1 
of each year.  NECA Changes Order, 12 FCC Rcd 18400, Appendix B; 
47 C.F.R. 54.711(a) (2000) (``Contributions shall be calculated 
and filed in accordance with the Telecommunications Reporting 
Worksheet.  The Telecommunications Reporting Worksheet sets forth 
information that the contributor must submit to the Administrator 
[USAC] on a semi-annual basis. . . .'').   See NECA Changes 
Order, 12 FCC Rcd at 18424,  43, 18442,  80, 18501-02, Appendix 
C.  The Commission adopted the Worksheet and attached it as 
Appendix C to the NECA Changes Order.  See also ``Common Carrier 
Bureau Announces Release of September Version of 
Telecommunications Reporting Worksheet (FCC Form 499-S) for 
Contributions to the Universal Service Support Mechanisms,'' 
Public Notice, CC Docket No. 98-171, 14 FCC Rcd 12171 (1999); 
``Common Carrier Bureau Announces Release of Telecommunications 
Reporting Worksheet (FCC Form 499-A) for April 1, 2000 Filing by 
All Telecommunications Carriers,'' Public Notice, CC Docket No. 
98-171, 15 FCC Rcd 16434 (2000).
17See FCC Form 499-A Telecommunications Reporting Worksheet -- 
Annual Filing, http://www.fcc.gov/Forms/Form499-A/499a.pdf (April 
2003) (``Annual Worksheet Form'').
18See Federal-State Joint Board on Universal Service, Petition 
for Reconsideration filed by AT&T, Report and Order and Order on 
Reconsideration, 16 FCC Rcd 5748 (2001) (``Quarterly Reporting 
Order'').  The first Quarterly Worksheet, reporting revenue data 
from the first quarter of 2001 (January 1 through March 31, 2001) 
was due May 11, 2001; thereafter, carriers reported first quarter 
revenues on May 1 of each year.  See Quarterly Reporting Order, 
16 FCC Rcd at 5755,  19 & note 32.  See FCC Form 499-Q  
Telecommunications Reporting Worksheet -- Quarterly Filing for 
Universal Service Contributors, http://www.fcc.gov/Forms/Form499-
Q/499q.pdf (April 2003) (``Quarterly Worksheet Form'').
1947 C.F.R.  54.713.  See also NECA Changes Order, 12 FCC Rcd 
at 18442 n.165 (citing 47 U.S.C.  206-209, 312, 403, 503).
20See 47 C.F.R.  54.709(a).  
21See, e.g., Federal-State Joint Board on Universal Service, 
Sixteenth Order on Reconsideration in CC Docket No. 96-45, Eighth 
Report and Order in CC Docket No. 96-45, and Sixth Report and 
Order in CC Docket No. 96-262, 15 FCC Rcd 1679, 1687,  18 (1999) 
(``Sixth Report and Order''); Federal-State Board on Universal 
Service, Further Notice of Proposed Rulemaking and Order, 15 FCC 
Rcd 19947, 19954,  17 (2000) (``Further Notice''); Federal-State 
Joint Board on Universal Service, 1998 Biennial Regulatory Review 
- Streamlined Contributor Reporting Requirements Associated with 
Administration of Telecommunications Relay Service, North 
American Numbering Plan, Local Number Portability, and Universal 
Service Support Mechanisms, Report and Order and Second Further 
Notice of Proposed Rulemaking, 17 FCC Rcd 24952, 24971-72,  35 
(2002) (``Streamlined Reporting Requirements Order''); Changes to 
the Board of Directors of the National Exchange Carrier 
Association, Inc., Federal-State Board on Universal Service, 
Second Order on Reconsideration in CC Docket No. 97-21, 12 FCC 
Rcd 22423, 22425,  3 (1997) (``Second Reconsideration Order'').
2247 C.F.R.  54.711(a) (``The Commission shall announce by 
Public Notice published in the Federal Register and on its 
website the manner of payment and the dates by which payments 
must be made.'')  See, e.g., ``Proposed Third Quarter 2003 
Contribution Factor,'' Public Notice, CC Docket No. 96-45, 18 FCC 
Rcd 11442 (Wireline Comp. Bur.  2003) (``Contribution payments 
are due on the date shown on the [USAC] invoice.'')  Our rules do 
not, however, condition payment on receipt of an invoice or other 
notice from USAC.  See 47 C.F.R.  54.706(b).  A carrier that 
does not file an Annual or Quarterly Worksheet may fail to 
receive an invoice from USAC, but is nonetheless  required to 
contribute to the universal service fund, unless its revenues are 
considered de minimis.  The instructions for the Annual and 
Quarterly Worksheets include tables for carriers to determine 
their annual contributions.  Carriers should estimate their 
annual contributions to determine if they are de minimis and 
therefore exempt.
2347 C.F.R.  54.713.  See also NECA Changes Order, 12 FCC Rcd 
at 18442 n.165 (citing 47 U.S.C.  206-209, 312, 403, 503).
24ConQuest Operator Services Corp., Order of Forfeiture, 14 FCC 
Rcd 12518, 12518,  1 (1999) (``ConQuest'').  
25See, e.g., America's Tele-Network Corp., Notice of Apparent 
Liability for Forfeiture, 15 FCC Rcd 20903, 20906,  8 (2000) 
(``ATNC''); Matrix Telecom, Inc., Notice of Apparent Liability 
for Forfeiture, 15 FCC Rcd 13544, 13546,  7 (2000) (``Matrix'').
26Globcom's website states that the carrier provides a number of 
services, including residential and commercial long-distance, 
calling cards, and toll-free numbers.   See 
http://www.globcom.com/index.aspx.   The website also offers 
Globcom's rates for calls to dozens of countries, as well as 
within the U.S.
27Globcom filed a Quarterly Worksheet for third quarter 2002 on 
October 10, 2002.  On January 27, 2003, Globcom filed a revised 
version of the third quarter 2002 filing.  On February 13, 2003, 
Globcom filed the Quarterly Worksheet for fourth quarter 2002.
28See Globcom's 2001 Annual Worksheet, p. 5, filed on May 7, 
2002.  The Annual and Quarterly Worksheets require carriers to 
disaggregate their revenue into interstate and international 
revenues, but Globcom simply reported its ``long-distance 
revenue.''  Id.
29See Globcom's 2002 Annual Worksheet, p. 5, filed on August 6, 
2002.  Globcom disaggregated its interstate and international 
revenues on its 2002 Annual Worksheet.
30See Globcom's Revised 2002 Annual Worksheet, p. 5, filed on 
October 10, 2002.
31The Commission recently modified its rules on carrier 
contributions to the universal service fund.  See Federal/State 
Joint Board on Universal Service, 1998 Biennial Regulatory Review 
- Streamlined Contributor Reporting Requirements Associated with 
Administration of Telecommunications Relay Service, North 
American Numbering Plan, Local Number Portability, and Universal 
Service Support Mechanisms, Telecommunications Services for 
Individuals with Hearing and Speech Disabilities, and the 
Americans with Disabilities Act of 1990, Administration of the 
North American Numbering Plan and North American Numbering Plan 
Cost Recovery Contribution Factor and Fund Size, Number Resource 
Optimization, Telephone Number Portability, Truth-in-Billing and 
Billing Format, Report and Order and Second Further Notice of 
Proposed Rulemaking, 17 FCC Rcd 24952 (2002) (``Interim 
Contribution Order'').  As of April 1, 2003, USAC bases a 
carrier's universal service obligation on the carrier's projected 
collected revenue rather than its historical gross-billed 
revenue.  Interim Contribution Order, 17 FCC Rcd at 24969-974,  
29-39.
32USAC has sent Globcom numerous past due notices for Globcom's 
2001 and 2002 contributions, as well as current charges.  On 
January 23, 2003, USAC sent Globcom an invoice due February 14, 
2003 for $152,769.62 in 2001 and 2002 universal service-related 
charges, adjustments, and fees, as well as current charges.  On 
February 25, 2003, USAC sent Globcom another invoice informing 
the carrier that it owed $305,379.87, due March 14, 2003.  On 
March 21, 2003, USAC sent Globcom another invoice, informing the 
carrier that it owed $459,059.51.  On April 22, 2003, USAC sent 
Globcom an invoice informing the carrier that it now owed 
$497,240.98.  On May 22, 2003, USAC sent Globcom an invoice 
stating that the balance due, on June 13, 2003, was $536,422.36.  
On June 20, 2003, USAC sent Globcom an invoice informing the 
carrier that it owed $575,765.79, due July 15, 2003.   Most 
recently, on July 22, 2003, USAC sent Globcom an invoice stating 
that the balance due, $681,837.76, was past due on August 15, 
2003.  See Letter from Anne Marie Trew, Director, Finance 
Operations and D. Scott Barash, Vice President and General 
Counsel, USAC to William Davenport, Deputy Chief, Investigations 
and Hearings Division, Enforcement Bureau, Federal Communications 
Commission, dated August 21, 2003 (``USAC Letter'').  These 
statements from USAC are based on Globcom's reported 2000 and 
2001 revenue, as set forth in Globcom's Annual Worksheets for 
2001 and 2002.  Globcom did not file an Annual Worksheet for its 
pre-2000 revenue and has not been billed by USAC for those years.  
We take no action at this time regarding Globcom's failure to 
file or contribute prior to 2000.
33NECA bills contributors following the revenue data collection.  
See Consolidated Reporting Order, 14 FCC Rcd at 16612-13,  18.  
All carriers providing interstate telecommunications services 
(including, but not limited to, cellular telephone and paging, 
mobile radio, operator services, personal communications service, 
access, alternative access and special access, packet-switched, 
WATS, 800, 900, message telephone, private line, telex, 
telegraph, video, satellite, international, intraLATA, and resale 
services) are required to contribute to the TRS Fund on the basis 
of the interstate portion of their services.  TRS III Order, 8 
FCC Rcd at 5302,  12.  See also Consolidated Reporting Order, 14 
FCC Rcd at 16630-34,  59-67.
34According to NECA's records, on September 3, 2002, Globcom was 
billed $149.87, which was paid.  Globcom was billed  $100.00 for 
a late filing penalty, which was also paid.  On November 3, 2002, 
Globcom was billed $4,000 for a 2002 adjustment, after Globcom 
revised its Annual Worksheet.  On July 7, 2003, Globcom was 
billed $7,729.14, for 2003.  This amount became past due July 29, 
2003.  Globcom's balance due is $11,729.14, plus late payment 
charges, for a total past due amount of $11,928.14.  See Letter 
from Maripat Brennan, Manager, NECA to William Davenport, Deputy 
Chief, Investigations and Hearings Division, Enforcement Bureau, 
Federal Communications Commission, dated August 18, 2003 (``NECA 
Letter'').
35See Letter from Maureen Del Duca, Acting Division Chief, 
Investigations and Hearings Division, Enforcement Bureau, FCC, to 
Glenn Kofman, Globcom, Inc., dated January 13, 2003 (``January 
13th FCC Letter'').  The return receipt was signed on January 22, 
2003.
36See Letter from Maureen Del Duca, Chief, Investigations and 
Hearings Division, Enforcement Bureau, FCC, to Glenn Kofman, 
Globcom, Inc., dated February 20, 2003 (``February 20th FCC 
Letter'').  We have serious concerns about Globcom's apparent 
lack of cooperation with this investigation.  The Bureau mailed 
its LOI via certified mail, return receipt requested, on January 
13, 2003.  Globcom's response was due February 3, 2003; however, 
the carrier did not respond to the LOI or return the Bureau's 
telephone calls.  On February 20, 2003, the Bureau sent a second 
letter via facsimile and certified mail, return receipt 
requested, directing Globcom to respond to the LOI and warning 
that failure to respond to the LOI placed the carrier at risk of 
FCC enforcement action.  After receipt of this letter, Globcom 
employee Joe Vitale called Bureau staff on February 26, 2003.  
Mr. Vitale indicated that he would respond to the LOI and would 
forward at least some of the requested documents ``immediately.''  
After waiting a week for Globcom's response, Bureau staff called 
and left a message for Mr. Vitale at Globcom offices on March 5, 
2003; the call was not returned.  On March 20, 2003, the Bureau 
received an incomplete response to the LOI.  On April 16, 2003, 
the Bureau received additional information from Globcom, 
supplementing the initial response to the LOI.  This type of 
dilatory and noncompliant conduct may give rise to sanctions in 
future cases.
37See Letter from Joseph A. Vitale, Chief Operating Officer, 
Globcom, Inc. to Mika Savir, Investigations and Hearings 
Division, Enforcement Bureau, Federal Communications Commission 
(Mar. 14, 2003) (``Globcom March 14, 2003 Letter''); Letter from 
Glenn Kofman, CEO, Globcom, Inc. to Mika Savir, Investigations 
and Hearings Division, Enforcement Bureau, Federal Communications 
Commission (Apr. 16, 2003) (``Globcom April 16, 2003 Letter'').
3847 U.S.C.  503(b)(1)(B); 47 C.F.R.  1.80(a)(1); see also 47 
U.S.C.  503(b)(1)(D) (forfeitures for violation of 14 U.S.C.  
1464).  Section 312(f)(1) of the Act defines willful as ``the 
conscious and deliberate commission or omission of [any] act, 
irrespective of any intent to violate'' the law.  47 U.S.C.  
312(f)(1). The legislative history to section 312(f)(1) of the 
Act indicates that this definition of willful applies to both 
sections 312 and 503(b) of the Act, H.R. Rep. No. 97-765, 97th 
Cong. 2d Sess. 51 (1982), and the Commission has so interpreted 
the term in the section 503(b) context.  See, e.g., Application 
for Review of Southern California Broadcasting Co., Memorandum 
Opinion and Order, 6 FCC Rcd 4387, 4388 (1991) (``Southern 
California Broadcasting'').  The Commission may also assess a 
forfeiture for violations that are merely repeated, and not 
willful.  See, e.g., Callais Cablevision, Inc., Grand Isle, 
Louisiana, Notice of Apparent Liability for Monetary Forfeiture, 
16 FCC Rcd 1359 (2001) (``Callais Cablevision'') (issuing a 
Notice of Apparent Liability for, inter alia, a cable television 
operator's repeated signal leakage).  ``Repeated'' means that the 
act was committed or omitted more than once, or lasts more than 
one day.  Southern California Broadcasting, 6 FCC Rcd at 4388,  
5; Callais Cablevision., 16 FCC Rcd at 1362,  9.
3947 U.S.C.  503(b); 47 C.F.R.  1.80(f).
40See, e.g., SBC Communications, Inc., Apparent Liability for 
Forfeiture, Forfeiture Order, 17 FCC Rcd 7589, 7591,  4 (2002).
41This NAL is independent of any collection action pursued by 
USAC, NECA, or the Commission for Globcom's outstanding balance.
4247 U.S.C.  254(d).
4347 C.F.R.  54.706(b).  See also 47 C.F.R.  54.709 
(describing method for determining carrier contributions to the 
universal service fund).
4447 C.F.R.  54.713.
45The Commission's rules specifically include resellers of 
interstate services in the definition of providers of interstate 
telecommunications services that must contribute to the fund.  47 
C.F.R.  54.706(a)(16).
46See Globcom March 14, 2003 Letter.
47USAC has no record of such payments, except for a single late 
payment fee.  Globcom has produced no documentation of the 
asserted payments.
48See USAC Letter.
49This amount could be significantly higher once Globcom 
corrects its revenue information. 
50See, e.g., Sixth Report and Order, 15 FCC Rcd at 1687,  18; 
Further Notice, 15 FCC Rcd at 19954,  17; Streamlined Reporting 
Requirements Order, 17 FCC Rcd at 24971-72,  35; Second 
Reconsideration Order, 12 FCC Rcd at 22425,  3.  
51See, e.g., Intellicall Operator Services, Notice of Apparent 
Liability for Forfeiture, 15 FCC Rcd 13539, 13541-42,  7-10 
(2000) (``Intellicall'').
5247 C.F.R.  64.604(c)(5)(iii)(A).  This section specifically 
includes carriers -- like Globcom -- that provide resale 
services.  Id.
5347 C.F.R.  64.604(c)(5)(iii)(B).  
54Id.  
55Id.  
56The 2002 invoice for $4000 sent to Globcom on November 3, 2002 
is past due.  NECA sent the 2003 invoice on July 7, 2003, which 
became past due on July 29, 2003.  
5747 C.F.R.  54.711, 54.713.  Section 54.711(a) provides, in 
part:
     An officer of  the contributor  must certify  to the 
     truth  and   accuracy   of  the   Telecommunications 
     Reporting  Worksheet,  and  the  Commission  or  the 
     Administrator may  verify any  information contained 
     in the Telecommunications Reporting Worksheet at the 
     discretion  of   the   Commission.   Inaccurate   or 
     untruthful    information    contained     in    the 
     Telecommunications Reporting  Worksheet may  lead to 
     prosecution under the  criminal provisions  of Title 
     18 of the United  States Code.  [USAC]  shall advise 
     the Commission of any enforcement  issues that arise 
     and provide any suggested response.
47 C.F.R.  54.711(a).
58See Globcom's 2001 Annual Worksheet at 5.  Globcom did not 
disaggregate its 2000 revenue into interstate and international 
revenues, so we refer to them as generally ``long-distance 
revenues.''
59See Globcom's 2002 Annual Worksheet at 5.  
60See Globcom April 16, 2003 Letter.  Globcom disaggregated the 
year 2000 revenues as $1,586,299 for interstate and $6,345,197 
for international.  This disaggregation was omitted from the 
Annual Worksheet.  Globcom's 2000 federal tax return lists 
$5,835,818 in gross revenues.  Globcom's 2001 federal income tax 
return lists gross revenues of $21,406,048.
61$7,931,497 (2000 revenue, per LOI) - $5,835,818 (2000 revenue, 
per 2001 Annual Worksheet) = $2,095,679 underreported revenue.  
62$21,099,070 (2001 revenue, per LOI) - $5,187,343 (2001 
revenue, per 2002 Annual Worksheet) = $16,218,705 underreported 
revenue.  
63Under section 503(b)(6) of the Act and section 1.80(c)(3) of 
the Commission's rules, the statute of limitations for this 
violation is one year.  47 U.S.C.  503(b)(6); 47 C.F.R.  
1.80(c)(3).  Therefore, as discussed below, we will only impose a 
forfeiture for the revised 2002 Annual Worksheet, which Globcom 
filed on October 10, 2002.
64See 47 C.F.R.  54.711, 54.713.
65On October 10, 2002, Globcom filed a Quarterly Worksheet for 
third quarter 2002, which it subsequently revised on January 27, 
2003.  Globcom filed a Quarterly Worksheet for fourth quarter 
2002 on February 13, 2003.  
66The Bureau's LOI requested, among other things, copies of 
Globcom's Annual and Quarterly Worksheets, also known as ``Form 
499s.''  In the Globcom March 14th Letter, Globcom stated that it 
was enclosing the Annual Worksheets, but failed to do so.  In the 
Globcom April 16th Letter, Globcom stated that it ``cannot 
provide the FCC with copies of Globcom's 499 forms.''
67In addition to the 2001 and 2002 instances discussed above, 
Globcom failed to file the 2003 Annual Worksheet, the first 
quarter 2003 Quarterly Worksheet (due May 1), and the second 
quarter 2003 Quarterly Worksheet (due Aug. 1).
6847 U.S.C.  503(b)(2)(B); see also 47 C.F.R.  1.80(b)(2); see 
also Amendment of Section 1.80(b) of the Commission's Rules, 
Adjustment of Forfeiture Maxima to Reflect Inflation, Order, 15 
FCC Rcd 18221 (2000).
6947 U.S.C.  503(b)(6).  See also 47 C.F.R.  1.80(c)(3).
7047 C.F.R.  1.80(b)(4).
71See, e.g., ConQuest, 14 FCC Rcd at 12522,  9 (discussing the 
monthly USAC invoices and the ``more than adequate notice of 
ConQuest's universal service obligation'').
72ConQuest, 14 FCC Rcd at 12527,  19.
73Id. at 12528,  20.
74ATNC, 15 FCC Rcd at 20906,  9; Intellicall, 15 FCC Rcd at 
13541,  7; Matrix, 15 FCC Rcd at 13546-47,  8.
75See, e.g., Intellicall, 15 FCC Rcd at 13542,  10.
76See ConQuest, 14 FCC Rcd at 12518,  1.  
77See 47 U.S.C.  503(b)(6) (establishing a one-year statute of 
limitations for non-broadcast forfeiture actions).  See also 47 
C.F.R.  1.80(c)(3).
78ConQuest, 14 FCC Rcd at 12527,  19.
79See, e.g., ATNC, 15 FCC Rcd at 24393,  7; Intellicall, 15 FCC 
Rcd at 13541-42,  7-8; Matrix, 15 FCC Rcd at 13546-47,  7-8; 
PTT Telekom, 16 FCC Rcd at 7479,  7.  
80Matrix, 15 FCC Rcd at 13546-47,  8.
81   $10,000 for each of the two violations, plus $5,943 (half of 
the unpaid balance) is $25,943.
8247 C.F.R.  1.80(4).  
8347 C.F.R.  1.80(b)(4), Note to paragraph (b)(4):  Section II. 
Adjustment Criteria for Section 503 Forfeitures; Forfeiture 
Policy Statement, 12 FCC Rcd at 17117, Appendix A, Section II.
8447 C.F.R.  54.711(a).
85We note that our action is independent of any criminal 
prosecution that might be brought ``under the criminal provisions 
of Title 18 of the United States Code.''  47 C.F.R.  54.711(a).  
See, e.g., 18 U.S.C.  1001.
86As discussed above, Globcom failed to file the 2003 Annual 
Worksheet and the first and second quarter 2003 Quarterly 
Worksheets.
87See infra note 18.  We note that some of the Worksheets 
submitted by Globcom were filed late.  Carriers must submit their 
quarterly Worksheet no later than February 1, May 1, August 1, 
and November 1 of each year.  See Quarterly Worksheet Form at 1.  
Carriers must submit their Annual Worksheets no later than April 
1 of each year. As described above, Globcom filed its 2001 Annual 
Worksheet on May 7, 2002 and its 2002 Annual Worksheet on August 
6, 2002 (amended October 10, 2002).  Late filing of revenue 
information harms the universal service fund because USAC and the 
Commission cannot accurately project the contribution base for 
the upcoming quarter with incomplete revenue information. Globcom 
and other carriers should note that we may assess forfeitures for 
late filing in future enforcement actions.
88See NOS Communications, Inc., Affinity Network Incorporated 
and NOSVA Limited Partnership, Order to Show Cause, Notice of 
Opportunity for Hearing, 18 FCC Rcd 6952 at  27 (2003); Business 
Options, Inc., Order to Show Cause and Notice of Opportunity for 
Hearing, 18 FCC Rcd 6881 at  36 (2003).
89See 47 C.F.R.  1.1914.