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




In the Matter of                 )
                                )
Pend Oreille                     )    File No. EB-03-TC-123
Telephone Company                )    NAL/Acct. No. 200432170001 
                                )    FRN: 0007838568
Apparent Liability for           )
Forfeiture




           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted:  May 24, 2004               Released:  May 24, 2004  

By the Chief, Enforcement Bureau:

I.          INTRODUCTION

            1. In  this   Notice   of  Apparent   Liability   for 
Forfeiture  (``NAL''),  we  find  that  Pend  Oreille   Telephone 
Company   (``Pend   Oreille'')   apparently   violated    section 
214(e)(1)(B) of the  Communications Act of 1934, as amended  (the 
``Act''),1   and  sections   54.405(b)  and   54.411(d)  of   the 
Commission's  rules,  by  willfully  and  repeatedly  failing  to 
publicize the availability of Lifeline and Link-Up services  ``in 
a manner reasonably  designed to reach those likely to  qualify'' 
for  the   services.2   Specifically,  Pend  Oreille  failed   to 
advertise Lifeline or  Link-Up to low-income residents on  tribal 
lands  within its service  territory.  Based upon  our review  of 
the facts and circumstances surrounding the apparent  violations, 
we find  Pend Oreille apparently liable  for a forfeiture in  the 
amount of $25,000.   We further find that Pend Oreille failed  to 
comply with  a directive of  the Enforcement Bureau  (``Bureau'') 
to provide  certain information and  documents. We admonish  Pend 
Oreille for this violation.  Finally, we require Pend Oreille  to 
file a report with the Enforcement Bureau within 60 days of  this 
NAL regarding  whether it has come  into compliance with the  Act 
and the  Commission's rules and  orders regarding the  obligation 
to  advertise the  availability of  Lifeline and  Link-Up ``in  a 
manner  reasonably designed to  reach those  likely to  qualify'' 
for the services. 

II.  BACKGROUND

     2.   Section 214(e)(1)(B) of the Act provides the  statutory 
          basis for  the action  we take  herein.3  Lifeline  and 
          Link-Up are universal  service support mechanisms  that 
          provide   for   discounted   services   to   low-income 
          consumers.  Lifeline provides low-income consumers with 
          discounts on the monthly cost of telephone service  for 
          a single telephone line in their principle  residence.4  
          Link-Up provides low-income consumers with discounts on 
          the initial  costs  of installing  telephone  service.5  
          Recognizing the  unique  needs and  characteristics  of 
          tribal  communities,  Lifeline   and  Link-Up   provide 
          qualifying  low-income  individuals  living  on  tribal 
          lands with larger discounts than any other group --  up 
          to $25 more in Lifeline support and $70 more in Link-Up 
          discounts.6

     3.   Pend Oreille is an eligible telecommunications  carrier 
          (``ETC''),  i.e.,  a  telephone  company  eligible   to 
          receive universal  service support  in accordance  with 
          section 254 of the Act.7  Pend Oreille has been an  ETC 
          since 1998.  The only  tribal land Pend Oreille  serves 
          is the Kalispel Reservation  in Usk, Washington,  which 
          was  established  as  a   federal  reservation  by   an 
          Executive Order in 1914  by President Woodrow  Wilson.8  
          On October 7, 2003, based on concerns raised informally 
          with the Bureau  by tribal leaders,  the Bureau sent  a 
          Letter of Inquiry (``LOI'')  to Pend Oreille,9  stating 
          that it was investigating whether it was satisfying its 
          obligation under  sections 54.405(b)  and 54.411(d)  of 
          the Commission's rules to publicize the availability of 
          Lifeline and Link-Up  services to low-income  residents 
          on tribal lands  ``in a manner  reasonably designed  to 
          reach those likely to  qualify'' for those  services.10  
          The LOI directed Pend Oreille to describe any action it 
          had taken  over  the  past  year  to  satisfy  sections 
          54.405(b) and  54.411(d) and  to support  its  response 
          with  recordings  or  transcripts   of  any  radio   or 
          television   advertisements,   written   material,   or 
          narrative descriptions with accompanying  documentation 
          of any other outreach, such as coordination with social 
          service agencies, contact  with tribes that  administer 
          any  relevant   government  assistance   programs,   or 
          personal letters to eligible customers.

       4. Pend Oreille's response to the LOI was due on  November 
15, 2003, but  Pend Oreille failed to respond by that date.   The 
Bureau subsequently contacted  Pend Oreille about its failure  to 
respond,  and Pend Oreille  explained that it  had misplaced  the 
LOI but would respond shortly.11  On December 11, 2003, almost  a 
full  month  past  the  due  date,  Pend  Oreille  submitted  its 
response to the LOI.  The response, however, did not include  the 
affidavits or  declarations required by the LOI.12   Furthermore, 
Pend Oreille failed  to include the one attachment it  referenced 
in support  of its alleged outreach  effort to Native  Americans.  
On  December  16, 2003,  the  Bureau once  again  contacted  Pend 
Oreille  and  directed  that the  company  amend  its  filing  to 
include the omitted information, which it did the following day.

     5.In  its  response,  Pend  Oreille  did  not  identify  any 
outreach or  advertising that referenced  either the Lifeline  or 
Link-Up services.   The only advertisement  or outreach to  which 
Pend  Oreille  referred  merely describes  the  full  rate,  non-
discounted   services  offered  by   the  company,  without   any 
reference to Lifeline  or Link-Up services.  The company did  not 
provide an explanation  as to why it has not taken any action  to 
publicize the  availability of Lifeline  and Link-Up services  on 
tribal lands.       


III.        DISCUSSION

              6.    The Commission  has authority  under  section 
503(b)(1)(B) of the Act to assess a forfeiture penalty against  a 
common carrier if the Commission determines that the carrier  has 
"willfully or repeatedly" failed to comply with the provisions of 
the Act or  with any  rule, regulation,  or order  issued by  the 
Commission under the Act.13   For a violation  to be willful,  it 
need not be intentional.14  

     7.As  noted  above,  the  scope  of  this  investigation  is 
limited to Pend Oreille's  efforts to advertise the  availability 
of Lifeline  and Link-up  services throughout  a portion  of  its 
service area,  the Kalispel  Reservation.15  Thus,  the issue  in 
this case is whether Pend Oreille has advertised the availability 
of Lifeline  and  Link-Up  services to  low-income  residents  on 
tribal lands as required by the Act and the Commission's rules.16  
As an ETC, Pend Oreille must meet this statutory obligation.   We 
find that Pend Oreille did not.  

     8.As stated  above, the Commission's  rules require ETCs  to 
publicize the availability of Lifeline and Link-Up services  ``in 
a manner reasonably designed to  reach those likely to  qualify'' 
for the  services.17  Although these  rules  apply to  all  ETCs, 
regardless of whether they serve  tribal lands, in adopting  them 
the Commission intended, in part, to promote discounted  services 
to low-income individuals living on tribal lands.18  Those living 
on tribal lands are generally ``likely to qualify'' for  Lifeline 
and Link-Up.19  Indeed, data  from the 2000  Census show that  30 
percent of families  on the  Kalispel reservation  are below  the 
poverty line.20  Requiring ETCs to publicize the availability  of 
low-income services  to tribal  communities  is critical  to  the 
fulfillment of section 254(i) of the Act's mandate that universal 
service be  available  at rates  that  are just,  reasonable  and 
affordable.21    

             9.     The Commission's rules give ETCs  flexibility 
in deciding the type of outreach that is ``reasonably designed to 
reach those  likely to  qualify'' for  the services.22   In  Pend 
Oreille's circumstances, however,  its response  to the  Bureau's 
LOI indicates that it did  nothing whatsoever to comply with  the 
Commission's rules.  The single document Pend Oreille submits  as 
evidence that  it did  any advertising  at all  relevant to  this 
investigation omits  any  mention  of  its  Lifeline  or  Link-Up 
offerings.  Furthermore,  Pend  Oreille  admits  that  only  five 
Native Americans  living  on  the  Kalispel  Reservation  receive 
Lifeline and Link-Up services.23  Based  on these facts, we  find 
that Pend Oreille apparently  violated the Commission's rules  by 
failing to  publicize the  availability of  Lifeline and  Link-Up 
services to low-income consumers residing on tribal lands.

              10.   With regard to Pend Oreille's late filing and 
omission of  relevant  information,  we find  that  Pend  Oreille 
violated a Commission order  by failing to  comply with the  LOI.  
Although the company claims that the LOI was sent to an incorrect 
address, it did receive it in  ample time to respond in a  timely 
manner.24  Rather  than  addressing the  Bureau's  inquiry,  Pend 
Oreille apparently lost the document among other  ``miscellaneous 
correspondence'' and, when contacted by the Bureau several  weeks 
after the response  was due,  answered the LOI  in an  incomplete 
manner.  Pend Oreille's apparent negligence in first misplacing a 
Commission directive, and then submitting an incomplete response, 
demonstrates a  lack of  respect for  the Commission's  authority 
which, in  turn,  undermined this  investigation.   We  therefore 
admonish Pend Oreille for this violation of our order. 

IV.      FORFEITURE AMOUNT

     11.  Section 503(b) of the Communications Act authorizes the 
Commission to  assess a  forfeiture of  up to  $120,000 for  each 
violation of the Act or of any rule, regulation, or order  issued 
by the Commission under the Act.25  In exercising such authority, 
we are required to 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  such other matters as justice  may 
require."26   In   addition,  the   Commission  has   established 
guidelines for forfeiture amounts and, where there is no specific 
base amount for a violation, retained discretion to set an amount 
on a case-by-case basis.27

     12.  The Commission's forfeiture  guidelines do not  address 
the  specific  violation  at   issue  in  this  proceeding.    In 
determining the proper forfeiture  amount in this case,  however, 
we note that the Commission has made clear that the provision  of 
universal service throughout  the country represents  one of  the 
primary goals of the Act.28  Congress intended all regions of the 
Nation,  including  low-income  consumers  and  those  in  rural, 
insular,   and   high   cost    areas,   to   have   access    to 
telecommunications and  information services  at rates  that  are 
reasonable  and  affordable.29   All  of  the  universal  service 
support mechanisms, including  the requirement  to publicize  the 
availability of low-income services, are necessary to  effectuate 
this central  statutory  goal.  As  we  have  noted  in  previous 
proceedings where carriers have undermined our universal  service 
goals by disregarding their regulatory obligations, we find  Pend 
Oreille's violations  of  the  Commission's  rules  substantially 
damaging to a  program that  is both  an important  congressional 
goal and  a primary  focus of  this Commission.30   Pend  Oreille 
appears to have violated  two Commission rules section  54.405(b) 
by failing to publicize the availability of Lifeline discounts to 
low-income residence of the  Kalispel Reservation, and  54.411(d) 
by similarly  failing to  publicize the  availability of  Link-Up 
discounts.  In light of the  circumstances present in this  case, 
we determine  that a  forfeiture of  $25,000 is  reasonable,  and 
propose a total forfeiture in that amount.31

           13. Pend Oreille will have  the opportunity to  submit 
further evidence and arguments  in response to  this NAL to  show 
that no forfeiture should be  imposed or that some lesser  amount 
should be assessed.32   


V.   CONCLUSIONS AND ORDERING CLAUSES

            14.     We have  determined  that  Pend  Oreille  has 
apparently  violated  214(e)(1)(B)  of  the  Act,  and   sections 
54.405(b) and 54.411(d) of the Commission's rules by willfully or 
repeatedly failing to publicize the availability of Lifeline  and 
Link-Up services to  low-income residents  of tribal  lands in  a 
manner reasonably designed to reach  those likely to qualify  for 
the service or  support. We find  Pend Oreille apparently  liable 
for $25,000.  We also admonish the company for failing to respond 
in a timely and thorough manner to a Commission directive.

            15.     Accordingly,  IT  IS  ORDERED,  pursuant   to 
503(b) of the Communications Act of 1934, as amended, 47 U.S.C.  
503(b), and sections  0.111, 0.311 and  1.80 of the  Commission's 
rules, 47  C.F.R.   0.111,  0.311 and  1.80 that  Pend  Oreille 
Telephone Company IS HEREBY NOTIFIED of an Apparent Liability for 
Forfeiture in  the amount  of $25,000  for willful  and  repeated 
violations of  Section  214(e)(1)(B)  of the  Act,  47  U.S.C.   
214(e)(1)(B)  and  sections  54.405(b)   and  54.411(d)  of   the 
Commission's rules 47 C.F.R  54.405(b), 54.411(d) as  described 
in the paragraphs above. 33

            16.     IT IS  FURTHER ORDERED,  pursuant to  section 
1.80 of the  Commission's rules,  47 C.F.R.   1.80, that  within 
thirty (30)  days  of the  release  of this  Notice  of  Apparent 
Liability, Pend  Oreille Telephone  Company  SHALL PAY  the  full 
amount of  the proposed  forfeiture34 OR  SHALL FILE  a  response 
showing why  the proposed  forfeiture should  not be  imposed  or 
should be reduced.35

             17.    IT IS FURTHER ORDERED that Pend Oreille SHALL 
FILE  a  report  with  the  Chief,  Telecommunications  Consumers 
Division, Enforcement  Bureau,  FCC,  within  60  days  from  the 
release of this Notice,  on whether it  has come into  compliance 
with the Act and the Commission's rules and orders regarding  the 
obligation to advertise the availability of Lifeline and  Link-Up 
``in a  manner  reasonably  designed to  reach  those  likely  to 
qualify'' for the  services.  The report  should provide  details 
describing Pend Oreille's compliance actions.36  

            18.          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.

             19.    Requests for payment  of the  full amount  of 
this Notice  of  Apparent  Liability under  an  installment  plan 
should be  sent to:  Chief,  Revenue and  Receivables  Operations 
Group, 445 12th Street, S.W., Washington, D.C., 20554.37

     20.  IT IS FURTHER ORDERED  that Pend Oreille IS  ADMONISHED 
for failing  to respond  timely and  thoroughly to  a  Commission 
directive.     

              21.   Under the Small Business Paperwork Relief Act 
of 2002, Pub L. No. 107-198,  116 Stat. 729 (June 28, 2002),  the 
FCC 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 thirty  (30) 
days of  this  Notice  of  Apparent  Liability,  either  in  your 
response to the  NAL or in a  separate filing to  be sent to  the 
Telecommunications Consumers Division.  Your certification should 
indicate whether  you,  including  your  parent  entity  and  its 
subsidiaries, meet one of the  definitions set forth in the  list 
provided  by  the   FCC's  Office   of  Communications   Business 
Opportunities (``OCBO'') set forth 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 Act.   If you have questions  regarding any of  the 
information contained  in Attachment  A, please  contact OCBO  at 
(202) 418-0990.

     22.  IT IS FURTHER  ORDERED that  copies of  this Notice  of 
Apparent Liability  SHALL  BE  SENT  by  certified  mail,  return 
receipt requested, to  Mark R. Martell,  Assistant Manager,  Pend 
Oreille Telephone Company, 892  W. Madison Avenue, Glenns  Ferry, 
ID  83623.
                     
                         FEDERAL COMMUNICATIONS COMMISSION



                         David H. Solomon
                    Chief, Enforcement Bureau

          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.  214(e)(1)(B).
2         47 C.F.R.  54.405(b), 54.411(d).
3         Section 214(e)(1)(B)  of  the  Communications  Act,  47 
U.S.C  214(e)(1)(B), states:   ``A common carrier designated  as 
an eligible telecommunications carrier under paragraph (2),  (3), 
or (6) shall be eligible to receive universal service support  in 
accordance with  section 254  and shall,  throughout the  service 
area  for  which  the  designation  is  received  advertise   the 
availability of  such services  and  the charges  therefor  using 
media of general distribution.''
4         47 C.F.R.   54.401(a)(2);  In the  Matter of  Federal-
State Joint Board on Universal Service, Report and Order, 12  FCC 
Rcd 8776, 8957,  341(1997).
5         47 C.F.R.  54.411(a)(1).
6         47 C.F.R.  54.403(a)(4), 54.411(a)(3).  ``Tier four'' 
support provides eligible subscribers  living on tribal lands  up 
to an  additional  $25 per  month  towards reducing  basic  local 
service rates, but this discount  can not bring the  subscriber's 
cost for basic local  service to less than  $1.  See 47 C.F.R.   
54.403.
7         47 U.S.C.   254.  See also,  Letter from Pend  Oreille 
Telephone Company to Colleen Heitkamp, Chief,  Telecommunications 
Consumers Division, Enforcement Bureau (Dec. 9, 2003) (``Response 
to LOI'').  
8         See  United  States  v.  Pend  Oreille  Public  Utility 
District, 926 F. 2d 1502, 1504 (9th Cir. 1991). 
9         See Letter  of Inquiry  from Colleen  Heitkamp,  Chief, 
Telecommunications Consumers  Division,  Enforcement  Bureau,  to 
Pend Oreille Telephone Company (Oct. 7, 2003).
10   Based on concerns that low-income residents on tribal  lands 
may not be  aware of the  benefits of Lifeline  and Link-Up,  the 
scope of  the  investigation  was limited  to  ETCs'  efforts  to 
publicize Lifeline and  Link-Up to eligible  residents on  tribal 
lands.   
11   Pend  Oreille  apparently  lost  the  document  among  other 
``miscellaneous correspondence.''
12   The  LOI  specifically  directed  Pend  Oreille  to  produce 
affidavits and  declarations  signed by  an  authorized  officer, 
stating that all of the information  requested by the LOI in  the 
company's possession,  custody,  control or  knowledge  had  been 
produced, and that the information was true and correct.  
13   47 U.S.C.  503(b)(1)(B).
14   Southern California Broadcasting Co., 6 FCC Rcd 4387 (1991).
15    See supra, n. 9.
16   See 47  U.S.C.    214(e)(1)(B);  47  C.F.R.    54.405(b), 
54.411(d).
17   47 C.F.R.  54.405(b), 54.411(d). 
18   See In the Matter of Federal-State Joint Board on  Universal 
Service, Twelfth Report and Order, 15 FCC Rcd 12208, 12224,   26 
(2000) (``Twelfth Report and Order'').
19   See id., at 12208,  27 (``[F]ederal statistics reveal  that 
tribal communities  are  among  the poorest  populations  in  the 
United States'').
20   See     2000      Census,      Table      DP-3      at 
http://www.censtats.census.gov/data/US/2501735.pdf.    The   same 
data indicate that 206 people  live on the Kalispel  Reservation.  
See id. at Table DP-1.
21   47 U.S.C.  254(i).
22   We do, however, require an ETC to identify communities  with 
the lowest subscribership levels within its service territory and 
make appropriate efforts to  reach qualifying individuals  within 
those communities. For example, we would expect a carrier to take 
into consideration the cultural and linguistic characteristics of 
low-income communities within  its service territory  as well  as 
the efficacy  of  particular  methods in  reaching  the  greatest 
number  of   qualifying  low-income   individuals  within   those 
communities.  See Twelfth Report and Order, 15 FCC Rcd at  12250, 
 79.   See  also Lifeline  and  Link-Up, Report  and  Order  and 
Further Notice of Proposed Rulemaking, WC Docket No. 03-109, 2004 
WL 912459,  44-49, 58 (rel. April 29, 2004) (adopting  outreach 
guidelines and proposing outreach requirements).
23   See Response to LOI.  
24   Pend Oreille acknowledges that it  received the LOI in  late 
October.  See id. 
25        Section 503(b)(2)(B)  provides  for forfeitures  up  to 
$100,000 for each violation or  a maximum of $1,000,000 for  each 
continuing violation by common carriers  or an applicant for  any 
common  carrier   license,   permit,   certificate   or   similar 
instrument.  47  U.S.C.  503(b)(2)(B).   The Commission  amended 
its rules by adding a  new subsection to its monetary  forfeiture 
provisions  that   incorporates   by  reference   the   inflation 
adjustment  requirements   contained  in   the  Debt   Collection 
Improvement Act of 1996 (DCIA), Pub L. No. 104-134,  31001,  110 
Stat. 1321 (1996).   Thus, the maximum  statutory forfeiture  per 
violation  pursuant  to   section  503(b)(2)(B)  increased   from 
$100,000 to $120,000.   See Amendment of  Section 1.80(b) of  the 
Commission's Rules and Adjustment of Forfeiture Maxima to Reflect 
Inflation, 15 FCC Rcd 18221 (2000).
26        See 47 U.S.C.  503(b)(2)(D); see also The Commission's 
Forfeiture Policy Statement and Amendment of Section 1.80 of the 
Commission's Rules, 12 FCC Rcd 17087 (1997) (``Forfeiture Policy 
Statement''); recon. denied, 15 FCC Rcd 303 (1999).

27   Forfeiture Policy Statement, 12 FCC Rcd 17098-99,  22.
28   See Conquest Operator Services Corp., Apparent Liability for 
Forfeiture, 14 FCC Rcd  12518, 12526 (1999)  (citing Pub. L.  No. 
104-104, 110 Stat. 56 (1996)) (``Conquest'').
29   47 U.S.C.  254(b)(1); see also 47 U.S.C.  254(b)(3).
30   See Conquest, 14 FCC Rcd at 12527. 
31   47 U.S.C.  503(b)(4)(A).
32        47 U.S.C.  503(b)(4)(C); 47 C.F.R.  1.80(f)(3).

33        47 U.S.C.    214(e)(1)(B);  47  C.F.R.    54.405(b), 
54.411(d).  
34        The forfeiture amount should be paid by check or money 
order drawn to the order of the Federal Communications 
Commission.  Pend Oreille should include the reference 
``NAL/Acct. No. 200432170001 '' on its check or money order.  
Such remittance must be mailed to Forfeiture Collection Section, 
Finance Branch, Federal Communications Commission, P.O. Box. 
73482, Chicago, Illinois 60673-7482.  Requests for full payment 
under an installment plan should be sent to: Chief, Credit and 
Debt Management Center, 445 12th Street, S.W., Washington, D.C. 
20554.  See 47 C.F.R.  1.1914.
35
 If Pend Oreille chooses to respond, it should mail its response 
to Colleen Heitkamp, Chief, Telecommunications Consumers 
Division, Enforcement Bureau, Federal Communications Commission, 
445 12th Street, S.W. Room 3-C365, Washington, D.C. 20554, and 
must include the file number listed above.  It should also send 
an electronic copy of its response to Mark Stone, Deputy Chief, 
Telecommunications Consumers Division, at mark.stone@fcc.gov and 
Cynthia Bryant, Attorney, Telecommunications Consumers Division, 
at cynthia.bryant@fcc.gov. 

36   To comply  with this  Ordering Clause,  Pend Oreille  should 
follow the requirements n.35 supra.     
37   47 C.F.R.  1.1914.