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


In the Matter of                  )
                                 )
Shared Data Networks, LLC         )   File No. EB-04-SE-385
Satellite  Earth  Stations, Call  )   NAL/Acct. No. 200632100001
Signs E900105,                    )   FRN # 0003827888
E900106, and E900107              )
Charlotte, North Carolina


         NOTICE OF APPARENT LIABILITY FOR FORFEITURE


Adopted:  November 17, 2005             Released:   November 
22, 2005

By  the Chief,  Spectrum  Enforcement Division,  Enforcement 
Bureau:

I.         INTRODUCTION

      1.   In this Notice of Apparent Liability for 
 Forfeiture, we find Shared Data Networks, LLC (``SDN''), 
 licensee of satellite earth stations, E900105, E900106, and 
 E900107, Charlotte, North Carolina, apparently liable for a 
 forfeiture in the amount of nineteen thousand dollars 
 ($19,000) for operating without Commission authority and 
 failing to file timely renewal applications for its three 
 earth stations in apparent willful and repeated violation 
 of Section 301 of the Communications Act of 1934, as 
 amended (``Act'')1 and Sections 25.102(a) and 25.121(e) of 
 the Commission's Rules (``Rules'').2

II.         BACKGROUND

      2.   SDN operates a Very Small Aperture Terminal 
 (``VSAT'') system, comprised of earth stations E900105, 
 E900106, and E900107.  SDN's authorizations for each of its 
 earth stations specified license terms that commenced on 
 March 23, 1990 and expired on March 23, 2000.3  In December 
 of 2004, SDN's counsel contacted the Commission's 
 International Bureau (``IB'') and disclosed that SDN failed 
 to timely renew the licenses for its three earth stations 
 and was operating without Commission authority.  
 Thereafter, on January 11, 2005, SDN requested special 
 temporary authority (``STA'') to continue operations and 
 filed an application to reinstate its licenses.  IB granted 
 SDN's STA on February 14, 2005,4 and reinstated its 
 licenses on April 11, 2005.5 

      3.  IB referred this case to the Enforcement Bureau 
 (``Bureau'') for investigation and possible enforcement 
 action.  The Bureau's Spectrum Enforcement Division issued 
 SDN a letter of inquiry (``LOI'') on March 9, 2005,6 and a 
 follow-up LOI on August 18, 2005.7

      4.  In its responses,8 SDN admitted that it failed to 
 timely renew its earth station licenses and that it 
 continued to operate its stations without Commission 
 authority.  According to SDN, it believed that its renewal 
 applications were timely filed and that its licenses 
 remained in effect.9  SDN claimed that it first became 
 aware that its station licenses expired in November of 
 2004.10  SDN also claimed that it took immediate steps to 
 retain counsel, consult with Commission staff, prepare and 
 file ``an application for licensing of its VSAT operations, 
 along with a request for special temporary authority to 
 operate pending action on its application for a new VSAT 
 license,'' and thereby bring its stations into compliance 
 with the Commission's licensing requirements.11

III.           DISCUSSION

      5.  Section 301 of the Act and Section 25.102(a) of 
 the Rules prohibit the use or operation of any apparatus 
 for the transmission of energy or communications or signals 
 by an earth station except under and in accordance with a 
 Commission granted authorization.   Section 25.121(c) 
 provides that the license term for an earth station is 
 specified in the instrument of authorization.12   Section 
 25.121(e) of the Rules requires the licensee of an earth 
 station to file its renewal application ``no earlier than 
 90 days, and no later than 30 days, before the expiration 
 date of the license.''13  Absent a timely filed renewal 
 application, an earth station license automatically 
 terminates at the end of the license period.14

      6.  As stated previously, SDN's authorizations 
 specified that the license terms would expire on March 23, 
 2000.  SDN admitted that it failed to file its renewal 
 applications during the requisite 30-90 day period prior to 
 March 23, 2000.  Moreover, SDN admitted that it continued 
 to operate these stations without Commission authority from 
 March 23, 2000 (when its licenses expired) until February 
 14, 2005 (when its STA was granted).  Thus, it appears that 
 SDN violated Section 25.121(e) of the Rules by failing to 
 timely file renewal applications, and violated Section 301 
 of the Act and Section 25.102(a) of the Rules by continuing 
 to operate its stations without Commission authority. 

      7.  Section 503(b) of the Act,15 and Section 1.80(a) 
 of the Rules,16 provide that any person who willfully or 
 repeatedly fails to comply with the provisions of the Act 
 or the Rules shall be liable for a forfeiture penalty.  For 
 purposes of Section 503(b) of the Act, the term ``willful'' 
 means that the violator knew that it was taking the action 
 in question, irrespective of any intent to violate the 
 Commission's rules, and ``repeatedly'' means more than 
 once.17  Based upon the record before us, it appears that 
 SDN's violations of Section 301 of the Act and Sections 
 25.102(a) and 25.121(e) of the Rules were willful and 
 repeated.  

      8.       In  determining  the  appropriate  forfeiture 
 amount, Section  503(b)(2)(D)  of  the  Act directs  us  to 
 consider  factors, such  as  ``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.''18   Having considered  the statutory 
 factors, we find  it appropriate  to downwardly  adjust the 
 proposed aggregate forfeiture from $22,500 to $19,000 based 
 on SDN's voluntary disclosure of its violations.  

      9.  Section 1.80(b) of the Rules sets a base 
 forfeiture amount of ten thousand dollars ($10,000) for 
 operation of a station without Commission authority and 
 three thousand dollars ($3,000) for failure to file the 
 required forms or information (e.g., timely file a renewal 
 application).19  As the Commission recently held, a 
 licensee's failure to timely file a renewal application and 
 its continued operations without authorization constitute 
 separate violations of the Act and the Rules and warrant 
 the assessment of separate forfeitures.20  Accordingly, we 
 herein propose separate forfeiture amounts for SDN's 
 separate violations.  

      10. We propose a $18,000 forfeiture for SDN's 
 continued operations of its three earth stations beyond 
 March 23, 2000 ($6,000 for operating each station).  In 
 proposing $6,000 for each station's unauthorized 
 operations, we recognize that the Commission considers a 
 licensee who operates a station with an expired license in 
 better stead than a pirate broadcaster who lacks prior 
 authority, and thus downwardly adjusts the $10,000 base 
 forfeiture amount accordingly.21  We also recognize that 
 the $6,000 proposed forfeiture amount is higher than those 
 assessed against other licensees who operated with expired 
 licenses.22  However, we believe that the circumstances 
 warrant a higher forfeiture amount, given that SDN's 
 unauthorized operations spanned almost a five-year period, 
 a significantly greater period than those presented in 
 other cases.23   The higher $6,000 forfeiture for each 
 station relates to SDN's apparent violations that occurred 
 within the past year, but takes into account that those 
 apparent violations were continuous in nature.24  
 Additionally, consistent with precedent,25 we propose a 
 $4,500 forfeiture for SDN's failure to file the renewal 
 applications for its three stations ($1,500 for each 
 failure to file) within the time period specified in 
 Section 25.121(e) of the Rules.  Thus, we propose an 
 aggregate forfeiture of $22,500 ($18,000 for unauthorized 
 operation and $4,500 for failure to file timely renewal 
 applications).

      11. We find that a downward adjustment of this 
 proposed aggregate forfeiture amount to $19,000 is 
 warranted because SDN made voluntary disclosures to 
 Commission staff without undue delay and undertook 
 corrective measures -- after learning of its violations, 
 but prior to any Commission inquiry or initiation of 
 enforcement action.26  We do not find, however, that SDN's 
 lack of awareness presents a mitigating factor warranting a 
 further downward adjustment.  As a Commission licensee, 
 SDN's is charged with the responsibility for knowing and 
 complying with the terms of its authorizations, the Act and 
 the Rules, including the requirement to timely renew the 
 authorizations and maintain operating authority for its 
 three earth stations.27  

IV.       ORDERING CLAUSES

      12. Accordingly, IT IS ORDERED that, pursuant to 
 pursuant to Section 503(b) of the Act28 and Sections 0.111, 
 0.311 and 1.80 of the Rules,29 SDN IS hereby NOTIFIED of 
 its APPARENT LIABILITY FOR A FORFEITURE in the amount of 
 nineteen thousand dollars ($19,000) for its apparent 
 willful and repeated violations of Section 301 of the Act 
 and Sections 25.102(a) and 25.121(e) of the Rules.

      13. IT IS FURTHER ORDERED that, pursuant to Section 
 1.80 of the Rules,30 within thirty days of the release date 
 of this Notice of Apparent Liability for Forfeiture, SDN 
 SHALL PAY the full amount of the proposed forfeiture or 
 SHALL FILE a written statement seeking reduction or 
 cancellation of the proposed forfeiture.

      14. Payment of the forfeiture must be made by check or 
 similar instrument, payable to the order of the Federal 
 Communications Commission. The payment must include the 
 NAL/Acct. No. and FRN No. referenced above. Payment 
 bycheck or money order may be mailed to Federal 
 Communications Commission, P.O. Box358340,Pittsburgh, PA 
 15251-8340. Payment by overnight mail may be sent 
 toMellon Bank/LB358340,500 Ross Street, Room 1540670, 
 Pittsburgh, PA 15251. Payment by wire transfer may be 
 made to ABA Number043000261, receiving bankMellon Bank, 
 and account number911-6106.  Requests for payment of the 
 full amount of the NAL under an installment plan should be 
 sent to:  Associate Managing Director - Financial 
 Operations, 445 12th Street, S.W., Room 1A625, Washington, 
 D.C. 20554.31

      15. The response, if any, must be mailed to the Office 
 of the Secretary, Federal Communications Commission, 445 
 12th Street, S.W., Washington, D.C. 20554, ATTN: 
 Enforcement Bureau - Spectrum Enforcement Division, and 
 must include the NAL/Acct. No. referenced in the caption.

      16. 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; 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.
      17. IT IS FURTHER ORDERED that a copy of this Notice 
 of Apparent Liability for Forfeiture shall be sent by first 
 class mail and certified mail return receipt requested to 
 Larry W. Jones, President and CEO, Shared Data Networks, 
 LLC, 11101 Nations Ford Road, Charlotte, NC 28270 and to 
 counsel for Shared Data Networks, Karis A. Hastings, Esq., 
 Hogan & Hartson LLP, 555 Thirteenth Street, NW, Washington, 
 D.C. 20004.

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         Joseph P. Casey
                         Chief,     Spectrum     Enforcement 
Division
                         Enforcement Bureau



_________________________

147 U.S.C.  301.

247 C.F.R.  25.102(a) and 25.121(e).

3See  File  Nos. SES-LIC-19891221-00072,  SES-LIC-19891221-
00063, and SES-LIC-19891221-00064.

4See File No.  SES-STA-20050111-00031 (granted February 14, 
2005).

5See  File No.  SES-LIC-20050111-00030  (granted April  11, 
2005).

6See Letter  from Kathryn  Berthot, Deputy  Chief, Spectrum 
Enforcement    Division,   Enforcement    Bureau,   Federal 
Communications Commission to Larry  W. Jones, President and 
CEO, Shared Data Networks, LLC (March 9, 2005).

7See Letter  from Kathryn  Berthot, Deputy  Chief, Spectrum 
Enforcement    Division,   Enforcement    Bureau,   Federal 
Communications Commission to Larry  W. Jones, President and 
CEO, Shared Data Networks, LLC (August 18, 2005). 

8See Letter from Larry W.  Jones, President and CEO, Shared 
Data Networks,  to Ava Holly Berland,  Spectrum Enforcement 
Division,   Enforcement   Bureau,  Federal   Communications 
Commission  (September 1,  2005) (``Follow-up  Response''); 
Letter from Larry W. Jones,  President and CEO, Shared Data 
Networks,  to  Ava   Holly  Berland,  Spectrum  Enforcement 
Division,   Enforcement   Bureau,  Federal   Communications 
Commission (March 22, 2005) (``Response'').

9See Further Response at 1; Response at 1.  

10See Response at 2. .

11Id. at 2. 

12See 47 C.F.R.  25.121(c).

1347 C.F.R.  25.121(e). 

1447 C.F.R.  25.161. 

1547 U.S.C.  503(b).

1647 C.F.R.  1.80(a).

17See Southern California Broadcasting  Co., 6 FCC Rcd 4387 
(1991); see also WCS Communications,  Inc., 13 FCC Rcd 6691 
(WTB, Enf.  and Consumer Info.  Div. 1998) (finding  that a 
licensee's  inadvertent  failure  to  file  timely  renewal 
applications,   constitutes  a   repeated  violation   that 
continues until the date the license is renewed).  

1847  U.S.C.     503(b)(2)(D).   See  also   47  C.F.R.   
1.80(b)(4),   Note  to   paragraph   (b)(4):  Section   II. 
Adjustment  Criteria  for   Section  503  Forfeitures;  The 
Commission's Forfeiture  Policy Statement and  Amendment of 
Section  1.80 of  the Rules  to Incorporate  the Forfeiture 
Guidelines, 12  FCC Rcd 17087, 17110  (1997), recon. denied 
(1999).

1947 C.F.R. 1.80(b).

20See Discussion Radio, Inc., 19  FCC Rcd 7433, 7438 (2004) 
(assessing  a proposed  forfeitures  of  $5,000 and  $1,500  
against a broadcaster who both  operated its station for 14 
months without  Commission authority  and failed  to timely 
file its renewal application).

21See Discussion Radio, Inc., 19 FCC Rcd at 7438 (proposing 
a $5,000 forfeiture  for operating a station  for 14 months 
beyond the expiration of its license).

22Id.   See also Verizon  Southwest, Inc. 16 FCC  Rcd 2247 
(Enf.  Bur.,  Technical  and   Public  Safety  Div.,  2001) 
(proposing a $5,000 forfeiture  for operating a station for 
over 2 years beyond the expiration of its license).  

23Id. 

24Section  503(b)(6) of  the  Act, 47  U.S.C.    503(b)(6) 
prohibits  the assessment  of a  forfeiture for  violations 
that occurred more  than a year prior to the  NAL, but does 
not bar us  from taking into account  the continuous nature 
of  violations in  determining the  appropriate enforcement 
action and/or forfeiture amount.   See, e.g., Globcom, Inc. 
d/b/a  Globcom Global  Communications,  18  FCC Rcd  19893, 
19903  23 (2003), rev. pending; Roadrunner Transportation, 
Inc.,  15   FCC  Rcd  9669,   9671-71    8   (2000);  Cate 
Communications  Corp., 60  RR  2d 1386,  1388   7  (1986); 
Eastern Broadcasting Corp., 10 FCC 2d 37, 37-38  3 (1967); 
Bureau  D'Electronique Appliquee,  Inc., 20  FCC Rcd  3445, 
3447-48    8-9 (Enf.  Bur.,  Spectrum  Enf. Div.,  2005), 
response pending.

25See Discussion Radio, Inc., 19 FCC Rcd at 7438 (proposing 
a $1,500  forfeiture for failure  to file a  timely renewal 
application  for  a  broadcast   station);  see  also  Self 
Communications,  Inc., 15  FCC  Rcd  18661, 18664-65  (WTB, 
Public Safety and Private Wireless Div., 2000) (proposing a 
$1,500  forfeiture for  failure  to file  a timely  renewal 
application   for   a   218-219   MHz   service);   Vincent 
Communications,  Inc.,  15  FCC  Rcd 8432  (WTB,  Enf.  and 
Consumer Info.  Div., 1999) (proposing an  aggregate $4,500 
forfeiture for  failure to timely renewal  applications for 
three  paging stations),   forfeiture ordered,  15 FCC  Rcd 
18263 (Enf. Bur. 2000); Snider Communications Corp., 14 FCC 
Rcd 20047, 20048 (WTB, Enf.  and Consumer Info. Div., 1999) 
(proposing an  aggregate $21,000 forfeiture for  failure to 
file timely  renewal applications for 14  paging stations).  
See   also  American   Paging,  supra   (imposing  separate 
forfeitures   for  the   unauthorized   operation  of   two 
transmitters).

26See, e.g.,  Radio One Licenses,  Inc., 18 FCC  Rcd 15964, 
15965  4  (2003), recon. denied, 18 FCC  Rcd 25481 (2003); 
Emery  Telephone, 13  FCC Rcd  23854, 23858  (1998), recon. 
denied ,  15 FCC  Rcd 7181  (1999); Petracom  of Texarkana, 
LLC,  19 FCC  Rcd 8096,  8097-98   5-6 (Enf.  Bur. 2004); 
American Family Association, 17 FCC Rcd 181135, 18137 (Enf. 
Bur.  2002), recon.  denied,  18 FCC  Rcd  2413 (Enf.  Bur. 
2003); but  see American  Paging, Inc.,  12 FCC  Rcd 10417, 
10420 (WTB,  Enf. and  Consumer Info. Div.,  1997) (finding 
that  the mitigating  effect  of  voluntary disclosure  was 
abrogated by the licensee's delay).  

27See Discussion Radio, 19 FCC Rcd 7433, 7437 (2004); 
William S. Mills, 15 FCC Rcd 20071, 20072 (Enf. Bur. 2000); 
see also Peacock's Radio and Wild's Computer Service, Inc., 
16 FCC Rcd 15016, 15017 (2001).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

2847 U.S.C.  503(b).

2947 C.F.R.  0.111, 0.311 and 1.80.

3047 C.F.R.  1.80.

31See 47 C.F.R.  1.1914.