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Federal Communications Commission
Washington, DC 20554
) File No. EB-04-IH-0455
In the Matter of
) Acct. No. 200632080150
Clear World Communications Corp.
) FRN No. 0003-7363-60
1. The Enforcement Bureau ("Bureau") of the Federal Communications
Commission ("Commission") and Clear World Communications Corp. ("Clear
World" or the "Company") hereby enter into this Consent Decree for the
purpose of terminating the Bureau's investigation into whether Clear
World violated section 254 of the Communications Act of 1934, as
amended (the "Act"), relating to universal service, and/or certain
Commission rules relating to universal service, the Telecommunications
Relay Service ("TRS") Fund, the North American Numbering Plan
Administration ("NANPA"), and regulatory fees.
2. For the purposes of this Consent Decree, the following definitions
a. "Commission" and "FCC" mean the Federal Communications Commission.
b. "Bureau" means the Enforcement Bureau of the Federal Communications
c. "Clear World" means Clear World Communications Corp. and its
predecessors-in-interest and successors-in-interest.
d. "Parties" means Clear World and the Bureau.
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.
f. "Effective Date" means the date on which the Commission or the Bureau
releases the Adopting Order.
g. "Investigation" means the investigation commenced by the Bureau's
September 28, 2004 Letter of Inquiry regarding whether Clear World
violated the requirements of section 254 of the Act and/or
sections 1.1157, 52.17, 54.706, 54.711, 64.604 and 64.1195 of the
Commission's rules relating to carrier registration, universal service
reporting and contribution, number administration, telecommunications
relay systems and regulatory fee payments.
3. Pursuant to section 64.1195(a) of the Commission's rules, all carriers
that provide interstate telecommunications service must register with
the Commission through submission of FCC Form 499-A. In addition,
pursuant to section 254(d) of the Act and sections 54.706(a) and
54.711(a) 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 ("USF").
4. Section 225(b)(1) of the Act codifies Title IV of the Americans with
Disabilities Act of 1990. In support of that Act, section 64.604 of
the Commission's rules requires every carrier that provides interstate
telecommunications services to file Telecommunications Reporting
Worksheets and contribute to the TRS Fund based upon its interstate
and international end-user revenues.
5. Section 251(e)(1) of the Act directs the Commission to ensure the
availability of telephone numbers on an equitable basis. To this end,
section 52.17 of the Commission's rules requires that all
telecommunications carriers file Telecommunications Reporting
Worksheets and contribute toward the costs of numbering administration
on the basis of their end-user telecommunications revenues for the
prior calendar year.
6. Pursuant to section 9(a)(1) of the Act and section 1.1151 of the
Commission's rules, interstate telecommunications and other providers
must pay regulatory fees to the Commission to recover the costs of
certain regulatory activities. In particular, sections 1.1154 and
1.1157(b)(1) of the Commission's rules require that interstate
telecommunications carriers pay regulatory fees on the basis of their
interstate and international end-user revenues.
7. Clear World is a privately-owned company offering inter-exchange
carriage services mainly on the west coast of the United States, and
is obligated to operate in accordance with the Commission's USF rules.
On September 28, 2004, the Bureau issued a Letter of Inquiry ("LOI")
directing Clear World to provide information about its compliance with
the Commission's registration requirements and reporting and
contribution requirements involving the Universal Service Fund, the
TRS Fund, and the NANPA Fund. Clear World submitted a response to the
LOI on November 10, 2004 and supplemental responses on December 10,
2004, February 1, 2005 and May 24, 2005. In addition, on January 24,
2005, Clear World self-reported possible rule violations that came to
light during an internal compliance audit. The Bureau requested
additional information regarding this disclosure on February 22, 2005
and Clear World submitted a response to that request on March 4, 2005.
8. 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.
9. 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, Clear World 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.
10. Clear World agrees that it will make a voluntary contribution to the
United States Treasury in the amount of $290,000, paid in thirty-five
equal monthly installments of $8,000 and an initial payment in the
first month of $10,000, with the first payment due 30 days after the
Effective Date and each of the thirty-five successive payments due 30
days after the previous payment. 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. 200632080150" and "FRN
No. 0003-7363-60." Payment by check or money order may be mailed to
Federal Communications Commission, P.O. Box 358340, Pittsburgh, PA
15251-8340. Payment by overnight mail may be sent to Mellon Bank /LB
358340, 500 Ross Street, Room 1540670, Pittsburgh, PA 15251. Payment
by wire transfer may be made to ABA Number 043000261, receiving bank
Mellon Bank, and account number 911-6106.
11. For purposes of settling the matters set forth herein, Clear World
agrees to maintain 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 create, maintain and update an
FCC 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, among other things, describe the
regulatory fee, universal service, Telecommunications Relay Service
and North American Numbering Plan Administration rules and
requirements as they apply to Clear World. The Compliance Manual will
set forth a schedule of filing and payment dates associated with these
regulatory programs, and Clear World will create compliance
notifications that alert the Company to upcoming filing and payment
dates. The Compliance Manual will encourage personnel to contact the
Company's Legal Department, the Company's Chief Executive and/or the
Company's Chief Financial Officer with any questions or concerns that
arise with respect to the Company's FCC Compliance. The Company shall
submit to the Bureau a final version of its Compliance Manual 30 days
after the Effective Date.
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 within the first 30 days of employment
for all new employees.
c. Designated Contact. The Company will designate one employee as the
point of contact for regulatory compliance matters.
d. Review and Monitoring. The Company will review the FCC Compliance
Manual and FCC Compliance Training Program annually to ensure that
they are maintained in a proper manner and continue to address the
objectives set forth therein.
e. Audits. The Company will ensure that external and internal audit
reviews specifically address the Company's compliance with the FCC
f. Termination. Clear World's obligation under this Paragraph 11 shall
expire 36 months after the Effective Date.
12. Clear World acknowledges as of March 14, 2006, it is obligated to pay
the Universal Service Administrative Company ("USAC") and the
Commission $3,128,821 in outstanding contributions to the USF and
interest, late charges, administrative charges, and late payment fees
associated with those contributions. Since June 2005, Clear World has
been regularly paying down its outstanding debt with monthly payments
to the FCC or USAC and, as of March 1, 2006, has made debt reduction
payments totaling $530,000. As a condition of this Consent Decree,
Clear World will structure and implement a payment plan with the
Commission's Office of Managing Director ("OMD") and USAC eliminating
the total outstanding obligation.
13. 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 Clear World 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 Clear World with respect to
Clear World's basic qualifications, including its character
qualifications, to be a Commission licensee or authorized common
14. 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 Clear World 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 new evidence of noncompliance by
Clear World of the Act, the rules, or the Order.
15. Clear World 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. Clear World shall retain the right to
challenge Commission interpretation of the Consent Decree or any terms
16. Clear World'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.
17. 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.
18. 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 Clear World nor the Commission shall contest the validity of
the Consent Decree or the Adopting Order, and Clear World shall waive
any statutory right to a trial de novo.
19. 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.
20. 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 Clear World does not expressly consent) that
provision will be superseded by such Commission rule or order.
21. Clear World hereby agrees to waive any claims it may otherwise have
under the Equal Access to Justice Act, 5 U.S.C. S 504 and 47 C.F.R. S
1.1501 et seq., relating to the matters addressed in this Consent
22. This Consent Decree may be signed in counterparts.
Kris Anne Monteith
Chief, Enforcement Bureau
Federal Communications Commission
General Counsel and Secretary
Clear World Communications Corp.
47 U.S.C. S 254.
47 C.F.R. SS 1.1157, 52, 54 and 64.
See Letter from Hillary S. DeNigro, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, FCC to Robert Brewton, Clear World
Communications Corp. (September 28, 2004).
47 C.F.R. S 64.1195(a).
47 U.S.C. S 254(d); 47 C.F.R. SS 54.706(a), 54.711(a).
47 U.S.C. S 225(b)(1).
47 C.F.R. S 64.604(c)(5)(iii)(A).
47 U.S.C. S 251(e)(1).
47 C.F.R. S 52.17(a).
47 U.S.C. S 159(a)(1); see also 47 C.F.R. S 1.1151.
See 47 C.F.R. SS 1.1154, 1.1157(b)(1).
47 C.F.R. S 706(a)(5).
Federal Communications Commission DA 06-1063
Federal Communications Commission DA 06-1063