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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                                 )                           
     In the Matter of                                File No. EB-05-IH-2737  
                                                 )                           
     Spectracom, LLC                                 NAL Account No.         
                                                 )   200732080004            
     Applicant for Assignment of Private Land                                
     Mobile Stations WNFD452, WNHG245 and        )   FRN No. 0003730710      
     WNHU507                                                                 
                                                 )                           



                                FORFEITURE ORDER

   Adopted:  November 19, 2007  Released: November 20, 2007

   By the Chief, Investigations and Hearings Division, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Forfeiture Order, we find that Spectracom, LLC ("Spectracom"),
       applicant for assignment of Private Land Mobile stations WNFD452,
       WNHG245, and WNHU507 (the "Stations"), willfully violated Section
       1.948  of the Commission's rules by taking de facto control of the
       Stations and operating those Stations without prior Commission
       notification and approval. Specifically, Spectracom took control of
       the Stations in June 2005, but did not apply to obtain Commission
       approval of the Stations until November 14, 2005. We conclude,
       pursuant to Section 503(b) of the Communications Act of 1934, as
       amended ("Act"), that Spectracom is liable for forfeiture in the
       amount of twelve thousand dollars ($12,000).

   II. BACKGROUND

    2. As discussed in detail in the Spectracom, LLC Notice of Apparent
       Liability for Forfeiture ("NAL"), on November 14, 2005, Spectracom
       filed an FCC Form 603 application for Commission consent to the
       assignment of the licenses from Valley Comm to Spectracom (the
       "Application"). Spectracom reported in Question 7 on the Application
       that the assignment had already occurred. In response to a telephone
       inquiry from Wireless Telecommunications Bureau licensing staff
       regarding its answer to Question 7, Spectracom responded by letter,
       and explained that it had purchased the community repeaters from
       Valley Comm in June, 2005. Spectracom further acknowledged that it
       began operating the systems on the date of purchase and continued to
       operate them until the date of the letter on November 23, 2005. On
       November 23, 2005, the Commission sent a letter to Spectracom
       indicating that the assignment in question was apparently consummated
       prior to Commission approval. In the same letter, the Commission
       consented to the assignment of licenses, but did so without prejudice
       to any subsequent enforcement action. Spectracom did not file a
       notification of consummation following the consent to assignment as
       required by Section 1.948(d), and therefore is not the licensee of
       record for the Stations.

    3. On November 13, 2006, we issued the NAL to Spectracom, proposing a
       $12,000 forfeiture for engaging in an unauthorized transfer of control
       of the Stations, which was largely based on Spectracom's own
       admission, as described above. In a letter responding to the NAL dated
       November, 25, 2006, Spectracom now contends that it had not
       technically purchased the Stations, but, instead, had entered into a
       lease arrangement with the intent to purchase the Stations when the
       FCC Application could be completed. Specifically, Spectracom states
       that it paid a "rental amount" to Valley Comm to be applied to the
       purchase price, and under the lease arrangement, Valley Comm would
       file the Application on Spectracom's behalf once Spectracom's rental
       payments amounted to the purchase price of the Stations. According to
       Spectracom, formal purchase of the Stations has not yet been completed
       and, therefore, no unauthorized assignment took place because Valley
       Comm continues to own the repeaters and the licenses at issue. A
       search of the Commission's records indicates, however, that Spectracom
       neither filed FCC Form 608 (Application or Notification for Spectrum
       Leasing Arrangement or Private Commons Arrangement) for approval of
       the alleged lease arrangement nor did it file FCC Form 603 (FCC
       Wireless Telecommunications Bureau Application for Assignments of
       Authorization and Transfers of Control) prior to November 14, 2005.

   III. DISCUSSION

    4. Section 1.948 of the Commission's rules requires that
       "[a]uthorizations in the Wireless Radio Services may be assigned by
       the licensee to another party, voluntarily or involuntarily, directly
       or indirectly, or the control of a license holding such authorizations
       may be transferred, only upon application to and approval by the
       Commission." Thus, under Section 1.948 of the Commission's rules, a
       licensee in the Wireless Radio Services involved in an assignment of
       authorization or substantial transfer of control must apply to and
       receive authorization from the Commission before control of a station
       is transferred or an assignment is consummated.

    5. In 2003, the Commission adopted a set of rules that allow for spectrum
       leasing in certain circumstances. To be eligible to lease spectrum,
       the licensee must have exclusive use of the spectrum.  These rules
       only permit transfer of de facto control under the spectrum leasing
       provisions after Commission approval.

    6. In the instant case, the record shows that Spectracom took control of
       the Stations from Valley Comm in June 2005, and immediately began
       operating the systems without prior FCC approval. In the NAL, we noted
       that Spectracom filed its FCC Form 603 requesting approval of the
       license assignments five months late. Spectracom argues in its NAL
       Response that, during those five months, it was only leasing the
       Stations. This defense is unavailing as it does not avoid the
       requirement of prior Commission approval of spectrum leases, as noted
       above. Further, because the licenses at issue here are for shared use
       of frequencies below 470 MHz that are not eligible for spectrum
       leasing, Spectracom could not have obtained Commission approval for
       the transfers of control associated with the alleged spectrum leases
       even if it had attempted to file for the requisite approvals.
       Spectracom's NAL Response offers no other defenses or arguments. We
       therefore find that Spectracom willfully violated Section 1.948 of the
       Commission's rules by failing to notify and receive approval from the
       Commission before assuming control of the licenses at issue.

    7. With respect to the forfeiture amount, Spectracom asserts in response
       to the NAL that it is unable to pay a forfeiture in the amount of
       $12,000. As noted in the NAL, the Commission does not consider
       reducing or canceling a forfeiture in response to a claim of inability
       to pay unless such claim is supported by: (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 respondent's current financial status. Despite this
       explicit direction, Spectracom has provided no documentation to
       support its claim of inability to pay and therefore this defense must
       be rejected.

    8. Spectracom's NAL Response does not otherwise dispute the forfeiture
       calculations described in detail in the NAL. We therefore affirm the
       forfeiture calculation and methodology set forth in the NAL. Applying
       the factors set forth in Section 1.80 and Section 503(b)(2)(D) of the
       Act to the instant case, we conclude that Spectracom is liable for a
       $12,000 forfeiture.

   IV. ORDERING CLAUSES

    9. ACCORDINGLY, IT IS ORDERED that, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended, and Sections 0.111, 0.311, and
       1.80 of the Commission's Rules, Spectracom, LLC SHALL FORFEIT  to the
       United States government the sum of $12,000 for willfully violating
       Section 1.948 of the Rules.

   10. Payment of the forfeiture shall be made in the manner provided for in
       Section 1.80 of the Commission's Rules within 30 days of the release
       of this Forfeiture Order. If the forfeiture is not paid within the
       period specified, the case may be referred to the Department of
       Justice for collection pursuant to Section 504(a) of the Act. 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 in the caption.
       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
       Pittsburgh, and account number FCC/ACV 9116229.

   11. Requests for payment of the full amount of this Forfeiture  under an
       installment plan should be sent to: Associate Managing Director,
       Financial Operations, Federal Communications Commission, 445 12th
       Street, S.W., Room 1-A625, Washington, DC 20554.

   12. IT IS FURTHER ORDERED that a copy of this Forfeiture Order shall be
       sent by Certified Mail, Return Receipt Requested, and regular mail, to
       Spectracom, LLC at its address of record.

   FEDERAL COMMUNICATIONS COMMISSION

   Hillary S. DeNigro

   Chief, Investigations and Hearings Division

   Enforcement Bureau

   See 47 C.F.R. S:  1.948.

   See FCC Wireless Telecommunications Bureau Application for Assignments of
   Authorization and Transfers of Control, File No. 0002379825, at 1
   ("Application").

   See 47 U.S.C. S: 503(b).

   See Spectracom, LLC, Notice of Apparent Liability for Forfeiture, 21 FCC
   Rcd 13412 (Enf. Bur. 2006).

   See  note 12, infra.

   See Application at 1, Question 7.

   See Letter from Paul McCarty, Spectracom, LLC, to Sharon Weigle, Public
   Safety and Critical Infrastructure Division, Wireless Telecommunications
   Bureau, Federal Communications Commission ("FCC"), dated November 23, 2005
   ("Paul McCarty Letter").

   See id.

   See Letter from Tracy Simmons, Associate Chief, Licensing Operations,
   Public Safety and Critical Infrastructure Division, Federal Communications
   Commission, to Spectracom, LLC, Attn. Paul Michael McCarty, dated November
   23, 2005.

   See id.

   See 47 C.F.R. S: 1.948(d).

   See Spectracom,LLC, Notice of Apparent Liability for Forfeiture, 21 FCC
   Rcd 13412 (Enf. Bur. 2006).

   See Letter from Mike McCarty, Spectracom, to Hillary S. DeNigro, Chief,
   Investigations and Hearings Division, Enforcement Bureau, dated November
   25, 2006, at 1 ("NAL Response").

   See id.

   See id.

   See id.

   See 47 C.F.R. S:S: 1.9030(e) and 1.9035(e).

   47 C.F.R. S: 1.948(a).

   See id.

   The leasing rules govern the transfer of de facto control pursuant to a
   spectrum leasing arrangement. Specifically, the Commission relaxed its
   policies to provide a process for lessors to obtain approval to transfer
   control of station facilities to lessees. The Commission adopted new rules
   including Section 1.9030(e) (relating to long term leases) and Section
   1.9035(e) (relating to short term leases), which require the filing of an
   FCC Form 608 prior to a transfer of de facto control of a wireless radio
   system pursuant to a lease agreement. See Promoting Efficient Use of the
   Spectrum Through Elimination of Barriers to Development of Secondary
   Markets, Report and Order and Further Notice of Proposed Rulemaking, 18
   FCC Rcd 20604 (2003); see also Promoting Efficient Use of the Spectrum
   Through Elimination of Barriers to Development of Secondary Markets,
   Report and Order and Further Notice of Proposed Rulemaking, Second Report
   and Order, Order on Reconsideration, and Second Further Notice of Proposed
   Rulemaking, 19 FCC Rcd 17503 (2004).

   See 47 C.F.R. S:S: 1.9001(b).

   See 47 C.F.R. S:S: 1.9030(e) and 1.9035(e).

   See Paul McCarty Letter at 1.

   See NAL Response at 1.

   See 47 C.F.R. S:S: 90.173 and 1.9001(b).

   See 47 C.F.R. S:S: 90.173, 1.9001(b), 1.9030(e) and 1.9035(e).

   See NAL, 21 FCC Rcd at 13414-15, P: 11. See also The Commission's
   Forfeiture Policy Statement and Amendment of Section 1.80 of the Rules to
   Incorporate the Forfeiture Guidelines, 12 FCC Rcd 17087, 17106-07 (1997),
   recon. denied, 15 FCC Rcd 303 (1999).

   See NAL, 21 FCC Rcd at 13413-14, P:P: 5-6.

   See 47 U.S.C. S: 503(b); 47 C.F.R. S:S: 0.111, 0.311, 0.314, 1.80, 1.948.

   See 47 C.F.R. S: 1.80.

   47 U.S.C. S: 504(a).

   See 47 C.F.R. S: 1.1914.

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission DA 07-4678

                                       4

   Federal Communications Commission DA 07-4678