Click here for Adobe Acrobat version
Click here for Microsoft Word version

******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



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

 
In the Matter of               )       File No. EB-04-IH-0157
                              )
New Edge Network, Inc.         )       Acct. No.  200432080185
                              )
                              )       FRN No.  0003-7204-71                                  


                              ORDER

     Adopted: September 10, 2004        Released: September 13, 
     2004

By the Chief, Enforcement Bureau:

  1.      The Enforcement Bureau (``Bureau'') has been conducting 
     an investigation into possible violations by New Edge 
     Network, Inc. (``New Edge'') of section 254 of the 
     Communications Act of 1934, as amended,1 and sections 
     54.706, 54.711, 54.713,2 and related provisions of the 
     Commission's rules in connection with the universal service 
     support mechanism reporting and contribution requirements.3

  2.      The Bureau and New Edge have negotiated the terms of a 
     Consent Decree that would terminate the Bureau's 
     investigation.  A copy of the Consent Decree is attached 
     hereto and incorporated by reference.

  3.      We have reviewed the terms of the Consent Decree and 
     evaluated the facts before us.  We believe that the public 
     interest would be served by approving the Consent Decree and 
     terminating the investigation.

  4.      Based on the record before us, and in the absence of 
     material new evidence relating to this matter, we conclude 
     that there are no substantial or material questions of fact 
     as to whether New Edge possesses the basic qualifications, 
     including those related to character, to hold or obtain any 
     Commission license or authorization.

5.   Accordingly, IT IS ORDERED, pursuant to section 4(i) of the 
Communications Act of 1934, as amended, 47 U.S.C.  154(i), and 
the authority delegated by sections 0.111 and 0.311 of the 
Commission's rules, 47 C.F.R.  0.111, 0.311, that the attached 
Consent Decree IS ADOPTED.

  6.      IT IS FURTHER ORDERED that the above captioned 
     investigation is TERMINATED.


                    FEDERAL COMMUNICATIONS COMMISSION



                    David H. Solomon
                    Chief, Enforcement Bureau



                         Before the
              Federal Communications Commission
                    Washington, DC 20554


In the Matter of                )      File No. EB-04-IH-0157
                               )
New Edge Network, Inc.          )      Acct. No. 200432080185
                               )
                               )      FRN No.  0003-7204-71


                       CONSENT DECREE

   1.     The Enforcement Bureau (``Bureau'') of the Federal 
     Communications Commission (``Commission'') and New Edge 
     Network, Inc. (``New Edge'') hereby enter into this 
     Consent Decree for the purpose of terminating the 
     Bureau's investigation into whether New Edge violated 
     the universal service reporting and contribution 
     requirements of section 254 of the Communications Act 
     of 1934, as amended (the ``Act'')4 and sections 54.706, 
     54.711, and 54.713 of the Commission's rules.5   

   2.     For the purposes of this Consent Decree, the 
     following definitions shall apply:

          2)a.      ``Commission'' means the Federal 
             Communications Commission.

          2)b. ``Bureau'' means the Enforcement Bureau of 
            the Federal Communications Commission.

          2)c. ``New Edge'' means New Edge Network, Inc., 
            any affiliate, d/b/a, predecessor-in-interest, 
            parent companies, any wholly or partially owned 
            subsidiary, or other affiliated companies or 
            businesses and their successors and assigns.

             2)d.   ``Parties'' means New Edge and the 
               Bureau.

          2)e. ``Order'' or ``Adopting Order'' means an 
            Order of the Commission or the Bureau adopting 
            the terms of this Consent Decree without change, 
            addition, deletion, or modification.

          2)f. ``Effective Date'' means the date on which 
            the Commission or the Bureau releases the 
            Adopting Order.

          2)g. ``Investigation'' means the investigation 
            commenced by the Bureau's May 21, 2004 Letter of 
            Inquiry6 regarding whether New Edge violated the 
            universal service reporting and contribution 
            requirements of section 254 of the Act and 
            sections 54.706, 54.711, and 54.713 of the 
            Commission's rules.

I.   BACKGROUND

   3.     Pursuant to section 254(d) of the Act and sections 
     54.706, 54.711, and 54.713 of the Commission's rules, 
     telecommunications carriers that provide interstate 
     telecommunications services and private service 
     providers that provide interstate telecommunications 
     services are required to file annual and quarterly 
     Telecommunications Reporting Worksheets (FCC Forms 499-
     A and 499-Q) and contribute to the Universal Service 
     Fund.7

   4.     New Edge offers virtual private networks and is a 
     broadband service provider, with resale agreements in 
     small and mid-sized markets.  On May 21, 2004, the 
     Bureau issued a Letter of Inquiry (``LOI'') to New Edge 
     requesting information about New Edge's compliance with 
     the universal service contribution requirements.  New 
     Edge submitted a response to the Bureau's LOI on June 
     10, 2004.  New Edge admitted that it had a substantial 
     balance due for past universal service contributions.  
     New Edge explained that it was paying a significant 
     amount in addition to its monthly contribution amount, 
     in order to eliminate the past due balance.  New Edge 
     began making these additional monthly payments in 
     December 2003, six months before the Bureau commenced 
     its investigation. 

II.  AGREEMENT

   5.     The Parties agree that the provisions of this 
     Consent Decree shall be subject to final approval by 
     the Bureau, through entry of the Order, which shall 
     immediately resolve and terminate the Investigation.

   6.     The Parties agree that this Consent Decree does 
     not constitute either an adjudication on the merits or 
     a factual or legal finding or determination regarding 
     any compliance or noncompliance with the requirements 
     of the Act or the Commission's rules and orders.  The 
     Parties agree that this Consent Decree is for 
     settlement purposes only and that by agreeing to this 
     Consent Decree, New Edge does not admit or deny 
     liability for violating any statute, regulation, or 
     administrative rule in connection with matters that are 
     the subject of this Consent Decree.  

   7.     New Edge agrees that it will make a voluntary 
     contribution to the United States Treasury in the 
     amount of fifty thousand dollars ($50,000) within 30 
     calendar days after the Effective Date of the Adopting 
     Order.  The payment must be made by check or similar 
     instrument, payable to the order of the Federal 
     Communications Commission.  The payment must include 
     ``Acct. No. 200432080185'' and ``FRN No. 0003-7204-
     71.''  Payment by check or money order must be mailed 
     to Forfeiture Collection Section, Finance Branch, 
     Federal Communications Commission, P.O. Box 73482, 
     Chicago, Illinois, 60673-7482.  Payment by overnight 
     mail may be sent to Bank One/LB 73482, 525 West Monroe, 
     8th Floor Mailroom, Chicago, IL  60661.  Payment by 
     wire transfer may be made to ABA Number 071000013, 
     receiving bank Bank One, and account number 1165259.

   8.     For purposes of settling the matters set forth 
     herein, New Edge agrees to implement a compliance 
     program related to future compliance with the Act, the 
     Commission's rules, and the Commission's orders.  The 
     program will include, at a minimum, the following 
     components: 

     (a)  Compliance Manual. The Company shall develop and 
     update as necessary a Compliance Manual.  Company 
     personnel shall have ready access to the Compliance 
     Manual and are to follow the procedures contained in 
     it.  The Compliance Manual will describe the universal 
     service rules and requirements as they apply to New 
     Edge.  The Compliance Manual will encourage personnel 
     to contact the Company's Legal Department, the 
     Company's Chief Executive and/or Chief Financial 
     Officer with any questions or concerns that arise.

     (b)  Compliance Training Program.  The Company will 
     establish an FCC compliance training program for 
     employees who engage in activities subject to FCC 
     regulation.  Training sessions will be conducted at 
     least annually to ensure compliance with the Act and 
     the FCC's regulations and policies and, for new 
     employees, within the first 30 days of employment.

     (c)  Designated Contact.  The Company will designate 
     one employee as the point of contact for all regulatory 
     compliance matters.

     (d)  Review and Monitoring.  The Company will review 
     the Program annually to ensure that it is maintained in 
     a proper manner and continues to address the objectives 
     set forth therein.

   9.     New Edge agrees to make timely contributions to 
     the universal service fund of its monthly contribution 
     amount and late payment fees, if any, as required by 
     the Commission's rules.  New Edge further agrees to pay 
     to the universal service fund on or before the 15th of 
     each month additional payments representing delinquent 
     contributions, interest, late charges, administrative 
     charges, and late payment fees as follows:  September 
     15, 2004 through November 15, 2004, $70,000 per month; 
     December 15, 2004 through May 15, 2005, $100,000 per 
     month; June 15, 2005 through September 15, 2005, 
     $534,897.61 per month.  If the 15th of the month is not 
     a business day, the additional monthly payment is due 
     the prior business day.  The additional monthly payment 
     is to be made in a separate payment from monthly 
     contributions to the universal service fund.  The 
     additional monthly payment must include the Filer 499 
     ID and the company name.  The payment instructions are 
     as follows:

    Check payments:  If sending by US Mail or major courier 
     service (e.g., Airborne, Federal Express, or UPS), 
     please send check payments to 

          Universal Service Administrative Company
          1259 Paysphere Circle
          Chicago, IL  60674

    ACH Payments:  ACH Payments should be sent in a CCD+ 
     format to

          ABA Number 071000505
          Bank Account Number 5590045653

   10.    New Edge agrees that in the event it shall fail, 
     after the Effective Date, to make a timely required 
     contribution as described in Paragraph 9 to the 
     universal service fund it will be in default of this 
     Consent Decree.  In addition to any other penalties 
     which may be assigned pursuant to applicable law, New 
     Edge will be required to make payments sufficient to 
     satisfy all remaining disbursements described in 
     Paragraph 9 above.  Such payments will be made in no 
     more than three installments, each no more than 30 days 
     apart, to be completed within 90 days after receipt of 
     written notice to New Edge from the Bureau stating that 
     New Edge is in default.

   11.    The Bureau agrees that it will not use the facts 
     developed in this Investigation through the Effective 
     Date of the Consent Decree or the existence of this 
     Consent Decree to institute, on its own motion, any new 
     proceeding, formal or informal, or take any action on 
     its own motion against New Edge concerning the matters 
     that were the subject of the Investigation.  The Bureau 
     also agrees that it will not use the facts developed in 
     this Investigation through the Effective Date of this 
     Consent Decree or the existence of this Consent Decree 
     to institute on its own motion any proceeding, formal 
     or informal, or take any action on its own motion 
     against New Edge with respect to New Edge's basic 
     qualifications, including its character qualifications, 
     to be a Commission licensee or authorized common 
     carrier.  

   12.    Nothing in this Consent Decree shall prevent the 
     Commission or its delegated authority from adjudicating 
     complaints filed pursuant to section 208 of the Act 
     against New Edge or its affiliates for alleged 
     violations of the Act, or for any other type of alleged 
     misconduct, regardless of when such misconduct took 
     place.  The Commission's adjudication of any such 
     complaint will be based solely on the record developed 
     in that proceeding.  Except as expressly provided in 
     this Consent Decree, this Consent Decree shall not 
     prevent the Commission from investigating material new 
     evidence of noncompliance by New Edge of the Act, the 
     rules, or this Order.

   13.    New Edge waives any and all rights it may have to 
     seek administrative or judicial reconsideration, 
     review, appeal or stay, or to otherwise challenge or 
     contest the validity of this Consent Degree and the 
     Order adopting this Consent Decree, provided the Bureau 
     issues an Order adopting the Consent Decree without 
     change, addition, modification, or deletion.  New Edge 
     shall retain the right to challenge Commission 
     interpretation of the Consent Decree or any terms 
     contained herein.

   14.    New Edge's decision to enter into this Consent 
     Decree is expressly contingent upon the Bureau's 
     issuance of an Order that is consistent with this 
     Consent Decree, and which adopts the Consent Decree 
     without change, addition, modification, or deletion.

   15.    In the event that this Consent Decree is rendered 
     invalid by any court of competent jurisdiction, it 
     shall become null and void and may not be used in any 
     manner in any legal proceeding.

   16.    If either Party (or the United States on behalf of 
     the Commission) brings a judicial action to enforce the 
     terms of the Adopting Order, neither New Edge nor the 
     Commission shall contest the validity of the Consent 
     Decree or the Adopting Order, and New Edge shall waive 
     any statutory right to a trial de novo.  New Edge shall 
     retain the right to challenge Commission interpretation 
     of the Consent Decree or any terms contained herein.

   17.    Any violation of the Consent Decree or the 
     Adopting Order will constitute a separate violation of 
     a Commission order, entitling the Commission to 
     exercise any rights or remedies authorized by law 
     attendant to the enforcement of a Commission order.

   18.    The Parties also agree that if any provision of 
     the Consent Decree conflicts with any subsequent rule 
     or order adopted by the Commission (except an order 
     specifically intended to revise the terms of this 
     Consent Decree to which New Edge does not consent) that 
     provision will be superseded by such Commission rule or 
     order.

   19.    New Edge hereby agrees to waive any claims it may 
     otherwise have under the Equal Access to Justice Act, 5 
     U.S.C.  504 and 47 C.F.R.  1.1501 et seq., relating 
     to the matters addressed in this Consent Decree.

   20.    This Consent Decree may be signed in counterparts.






________________________________
David H. Solomon
Chief, Enforcement Bureau
Federal Communications 
Commission


________________________________
Date

________________________________
Dan Moffat
President and CEO
New Edge Network, Inc.


________________________________
Date


_________________________

1 47 U.S.C.  254.

2 47 C.F.R.  54.706, 54.711, 54.713.

3 See Letter from Hillary S. DeNigro, Deputy Chief, 
Investigations and Hearings Division, Enforcement Bureau, FCC to 
Penny H. Bewick, Vice President-External Affairs, New Edge 
Network, Inc. (May 21, 2004).

4 47 U.S.C.  254.

5 47 C.F.R  54.706, 54.711, 54.713.

6 See Letter from Hillary S. DeNigro, Deputy Chief, 
Investigations and Hearings Division, Enforcement Bureau, 
FCC to Penny H. Bewick, Vice President-External Affairs, New 
Edge Network, Inc. (May 21, 2004).

7 47 U.S.C.  254(d); 47 C.F.R.  54.706, 54.711, 54.713.