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   May 21, 2010

   VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED

   AND  FACSIMILE TO (406) 585-9645

   Jeff Tarbert

   Vice President of Operations/General Manager

   TransAria, Inc.

   7330 Shedhorn Drive

   Bozeman, MT 59718

   Re: File No. EB-08-IH-1161

   Dear Mr. Tarbert:

   This letter is an official CITATION, issued pursuant to section 503(b)(5)
   of the Communications Act of 1934, as amended ("Act"), 47 U.S.C. S:
   503(b)(5), for failure to make certain regulatory filings and associated
   payments in violation of sections 52.17, 52.32, 54.706, 54.708, 54.711,
   64.604 and 64.1195 of the Commission's rules, and failing to comply with
   section 9.5(e)(3), one of the Commission's rules relating to the provision
   of E911 capabilities to its customers. As explained below, future
   violations of the Commission's rules and requirements in this regard may
   subject your company to monetary forfeitures.

   By letter of inquiry ("LOI") dated July 30, 2008, the Investigations and
   Hearings Division of the Commission's Enforcement Bureau ("the Division")
   initiated an investigation into whether TransAria, Inc. ("TransAria")
   violated the Commission's rules and orders requiring interconnected Voice
   over Internet Protocol ("VoIP") providers to make certain regulatory
   filings and associated payments. TransAria responded to the LOI on
   September 2, 2008. After reviewing the various responses to the LOI, the
   Division issued a supplemental letter of inquiry on March 27, 2009, to
   which TransAria responded on April 3, 2009. The Division issued an
   additional supplemental letter of inquiry on July 23, 2009, to which
   TransAria responded on August 6, 2009.

   In its response to the LOI, TransAria stated it began providing interstate
   telecommunications in 2004 and, in 2006, it began providing Internet
   Protocol data networking services for businesses, government and
   residences in Montana, as well as VoIP service over the public switched
   telephone network and/or the Internet. However, TransAria states that it
   does not offer traditional local and long distance voice services. The
   company stated that it filed its registration in June 2008. TransAria
   filed its first FCC Form 499-A, which reported revenue information for
   2007, on June 20, 2008, and it asserted in the certification section of
   the reporting worksheet that it is not a common carrier. In its response
   to the March 27, 2009, Supplemental LOI, TransAria asserted that it does
   not fit the definition of common carrier because, among other things, it
   does not provide service to the general public, it is limited by its
   service platform's capacity as well as by geographic limitations, and it
   uniquely engineers its services to meet the specific requirements of each
   customer. TransAria further asserted that it qualified for the de minimis
   exemption from contributing to the universal service mechanisms for 2005
   and 2006, but its 2008 FCC Form 499-A indicates it did not qualify for the
   exemption for 2007. In addition, TransAria made no contributions to the
   Universal Service Fund (USF) until August 21, 2008, after the Division
   initiated this investigation. It made a second payment on October 15,
   2008, and thereafter made no additional payments into the USF. Neither of
   these payments was sufficient to satisfy TransAria's outstanding USF
   balance at the time each payment was made. Moreover, during the period
   from July 2008 to April 2009, TransAria failed to pay the full amount it
   was invoiced by the Universal Service Administrative Company ("USAC") for
   its USF obligations.

   Section 254(d) of the Act requires, among other things, that "[e]very
   telecommunications carrier [providing] interstate telecommunications
   services . . . contribute, on an equitable and nondiscriminatory basis, to
   the specific, predictable, and sufficient mechanisms established by the
   Commission to preserve and advance universal service." In implementing
   this Congressional mandate, the Commission directed all telecommunications
   carriers providing interstate telecommunications services to contribute to
   the USF based upon their interstate and international end-user
   telecommunications revenues. The Commission also requires certain
   providers of interstate telecommunications, including providers of
   interconnected VoIP services, to contribute to the USF. In extending USF
   contribution requirements to providers of interconnected VoIP services,
   the Commission also required every interconnected VoIP provider that had
   not already registered with the Commission to do so through submission of
   FCC Form 499-A prior to August 1, 2006 in order to facilitate enforcement
   of the obligations imposed in the 2006 Contribution Methodology Order. The
   Commission requires USF contributors, including interconnected VoIP
   providers, to provide certain revenue information on the FCC Form 499-A
   and the FCC Form 499-Q ("Telecommunications Reporting Worksheet" or
   "Worksheet") on a periodic basis. USAC currently administers the USF. USAC
   bills carriers, including TransAria, each month based on their projected
   quarterly revenues, and payment is due by the date shown on the invoice.
   The failure of a carrier such as TransAria to abide by its federal filing
   obligation thus has a direct impact by removing from the base of USF
   contributions telecommunications revenues that otherwise should be
   included, thereby shifting to compliant carriers additional economic
   burdens associated with the federal universal service program.
   Consequently, a carrier's failure to file required Worksheets in a timely
   manner frustrates the very purpose for which Congress enacted section
   254(d) - to ensure that every interstate carrier "contribute, on an
   equitable and nondiscriminatory basis, to the specific, predictable, and
   sufficient mechanisms established by the Commission to preserve and
   advance universal service." Viewed in this context, the Telecommunications
   Reporting Worksheet is not only an administrative tool, but a fundamental
   and critical component of the Commission's Universal Service program.

   Title IV of the Americans with Disabilities Act of 1990, codified at 47
   U.S.C. S: 225, directs the Commission to ensure that interstate and
   intrastate telecommunications relay services are available, to the extent
   possible and in the most efficient manner, to hearing-impaired and speech
   impaired individuals in the United States. The Commission established the
   Telecommunications Relay Service ("TRS") Fund, currently administered by
   the National Exchange Carrier Association ("NECA"), to reimburse TRS
   providers for the costs of providing interstate TRS. Pursuant to section
   64.604 of the Commission's rules, every carrier providing interstate
   telecommunications services must contribute to the TRS fund. The
   Commission extended the requirement to contribute to the interstate TRS
   Fund to interconnected VoIP providers such as TransAria "consistent with
   [the Commission's] obligation to ensure the availability of TRS `to the
   extent possible and in the most efficient manner' to persons with hearing
   or speech disabilities." This requirement became effective October 5,
   2007, and NECA began issuing invoices to interconnected VoIP providers in
   March 2008 for their 2007 TRS contribution based on 2006 4th quarter
   revenue.

   In addition, section 251(e)(1) of the Act directs the Commission to
   oversee the administration of telecommunications numbering to ensure the
   availability of telephone numbers on an equitable basis. Section 251(e)(2)
   of the Act provides that "[t]he cost of establishing telecommunications
   numbering administration arrangements and number portability shall be
   borne by all telecommunications carriers on a competitively neutral basis
   as determined by the Commission." In carrying out this statutory
   directive, the Commission adopted section 52.17 of its rules, which
   requires, among other things, that all telecommunications carriers
   contribute toward the costs of numbering administration on the basis of
   their end-user telecommunications revenues for the prior calendar year.
   The Commission also adopted section 52.32 of its rules, which requires
   that telecommunications carriers contribute to the shared costs of
   long-term number portability as provided in the Commission's rules.
   Effective March 24, 2008, the Commission extended the North American
   Numbering Plan ("NANP") administration and local number portability
   ("LNP") contribution requirements to interconnected VoIP providers such as
   TransAria. Welch LLP ("Welch"), the NANP administrator, began invoicing
   interconnected VoIP providers in June 2008. Neustar, Inc. ("Neustar"), the
   LNP administrator, began invoicing interconnected VoIP providers in March
   2008.

   We conclude that TransAria did not comply with the Commission's rules and
   orders requiring interconnected VoIP providers to make certain regulatory
   filings and associated payments. As a provider of interconnected VoIP
   services with interstate revenues for the period from late 2006 through
   the present, TransAria was required to register with the Commission, file
   annual Telecommunications Reporting Worksheets with USAC, contribute to
   the USF and the TRS fund, and contribute to the shared costs of numbering
   administration and local number portability. The 2006 Contribution
   Methodology Order required that interconnected VoIP providers file FCC
   Form 499-Q reporting projected revenues for the fourth quarter of 2006 by
   August 1, 2006, and file FCC Forms 499-A beginning on April 1, 2007. Even
   if TransAria was not required to contribute to the USF for one or more
   years or file Quarterly Worksheets, either because it had not begun to
   offer interconnected VoIP service or because it qualified for the de
   minimis exemption to the rule, section 54.708 of the Commission's rules
   requires that all providers of interconnected VoIP service must file the
   annual Telecommunications Reporting Worksheet. The record in our inquiry
   demonstrates that, although TransAria began operating as an interconnected
   VoIP provider during 2006, it did not register or file its first FCC Form
   499-A until June 20, 2008, approximately six months after USAC advised
   TransAria of its universal service obligations, and almost two years after
   the mandated filing date set forth in the 2006 Contribution Methodology
   Order. In addition, TransAria never filed a 2007 FCC Form 499-A.

   Based upon its June 20, 2008 filing, TransAria received an invoice from
   USAC in July 2008, with payment due by August 15, 2008. TransAria paid the
   July 2008 invoice late, on August 21, 2008. TransAria subsequently made a
   partial payment on October 15, 2008, and then ceased contributing to the
   USF, despite continuing to receive invoices from USAC. As a result,
   TransAria has failed to discharge its USF payment obligations, at a
   minimum, for a 28-month period, from February 2007 to April 2009. NECA
   confirms that it sent an invoice to TransAria for its TRS obligations on
   July 5, 2009, with payment due by July 27, 2009. NECA further confirms
   that TransAria failed to pay this invoice and the debt was transferred to
   the FCC for collection. NECA further confirms an outstanding balance from
   2008 was not paid until April 23, 2010. Welch confirms that it sent
   TransAria an invoice for payment of NANP fees dated June 17, 2009, with
   payment due July 13, 2009. Welch further confirms that TransAria paid the
   NANP invoice approximately three months late. Finally, Neustar confirms
   that it sent TransAria monthly invoices for payment of LNP fees from July
   2008 to April 30, 2010, with payments due 45 days from the dates of the
   invoices. Neustar further confirms that TransAria paid the LNP invoices
   from July 2008 to June 2009, September to November 2009, and January 2010
   more than a full month late.

   In response to the July 23, 2009 Supplemental LOI, TransAria indicated it
   does not distribute warning stickers or labels to customers of its
   interconnected VoIP service, warning them that E911 service may be limited
   or not available, as required by section 9.5(e)(3) of Commission's rules.
   In addition to requiring distribution of the stickers, the rule directs
   providers of interconnected VoIP services to instruct subscribers to place
   the stickers or labels on or near the customer premises equipment used in
   conjunction with the service. Interconnected VoIP providers are required
   to distribute such warning stickers to each new subscriber prior to the
   initiation of that subscriber's service. Based on TransAria's response to
   the July 23, 2009 Supplemental LOI, we find that the company did not
   comply with the provisions of the Commission's E911 customer notification
   requirements applicable to providers of interconnected VoIP service.

   We, therefore, conclude that TransAria apparently violated sections 52.17,
   52.32, 54.706, 54.708, 54.711, 64.604 and 64.1195 of the Commission's
   rules by failing to file a registration statement and then meet the
   mandated filing and payment obligations imposed upon interconnected VoIP
   providers. Furthermore, we conclude that TransAria apparently violated
   section 9.5(e)(3) of the Commission's rules by failing to properly
   distribute to its subscribers warning stickers or labels concerning
   limitations upon E911 availability associated with its interconnected VoIP
   service, and by failing to instruct subscribers as to their use.

   If, after receipt of this citation, TransAria  violates the Communications
   Act or the Commission's rules in any manner described herein, the
   Commission may impose monetary forfeitures not to exceed $16,000 for each
   such violation or each day of a continuing violation up to $112,500 for a
   single continuing violation.

   You may respond to this citation within 30 days from the date of this
   letter either through (1) a personal interview at the Commission's Field
   Office nearest to your place of business, (2) a written statement, or (3)
   a teleconference interview with the Commission's Investigations & Hearings
   Division in Washington, D.C. Your response should specify the actions that
   you are taking to ensure that you do not violate the Commission's rules
   governing regulatory filings and associated payments, as described above.

   Please contact Mindy Littell at (202) 418-0789 to arrange a teleconference
   interview or an interview at the closest field office, if you wish to
   schedule a personal interview. You should schedule any interview to take
   place within 30 days of the date of this letter. You should send any
   written statement within 30 days of the date of this letter to:

   Mindy Littell

   Investigations & Hearings Division

   Enforcement Bureau

   Federal Communications Commission

   445-12th Street, S.W., Rm. 4-C330

   Washington, D.C. 20554

   Reference EB-08-IH-1161 when corresponding with the Commission.

   Under the Privacy Act of 1974, 5 U.S.C. S: 552a(e)(3), we are informing
   you that the Commission's staff will use all relevant material information
   before it, including information that you disclose in your interview or
   written statement, to determine what, if any, enforcement action is
   required to ensure your compliance with the Communications Act and the
   Commission's rules.

   The knowing and willful making of any false statement, or the concealment
   of any material fact, in reply to this citation is punishable by fine or
   imprisonment under 18 U.S.C. S: 1001.

   Thank you in advance for your anticipated cooperation.

   Sincerely,

   Hillary S. DeNigro

   Chief, Investigations & Hearings Division

   Enforcement Bureau

   47 C.F.R. S:S: 52.17, 52.32, 54.706, 54.708, 54.711, 64.604 and 64.1195.

   47 C.F.R. S: 9.5(e)(3).

   See Letter from Trent B. Harkrader, Deputy Chief, Investigations &
   Hearings Division, Enforcement Bureau, FCC, to Jeff Tarbert, TransAria,
   dated July 30, 2008.

   See TransAria Response to LOI, dated September 2, 2008, and attachments
   thereto ("LOI Response").

   See Letter from Trent B. Harkrader, Deputy Chief, Investigations &
   Hearings Division, Enforcement Bureau, FCC, to Jeff Tarbert, TransAria,
   dated March 27, 2009 ("March 27, 2009 Supplemental LOI").

   See TransAria Response to Supplemental LOI, dated April 3, 2009 ("April 3,
   2009 Supp. LOI Response").

   See Letter from Trent B. Harkrader, Deputy Chief, Investigations &
   Hearings Division, Enforcement Bureau, FCC, to Jeff Tarbert, TransAria,
   dated July 23, 2009 ("July 23, 2009 Supplemental LOI").

   See TransAria Response to Supplemental LOI, dated Aug. 6, 2009 ("Aug. 6,
   2009 Supp. LOI Response").

   See LOI Response at 1-2, and Attachment 3.

   See LOI Response at Attachment 3. TransAria states that it does not have
   any of its own network outside of Montana. See LOI Response at 2.  It
   notes that any operations it has in other states result from a
   Montana-based customer that has requested connection with those locations,
   which entails TransAria purchasing an out-of-state circuit from another
   vendor. Id.

   See LOI Response at 3.

   See TransAria 2008 FCC Form 499-A at Block 6 (accepted by USAC on June 20,
   2008). On September 9, 2008, TransAria filed FCC Forms 499-Q for November
   2007, February 2008, May 2008, and August 2008. In addition, TransAria
   subsequently filed a 2009 FCC Form 499-A and FCC Forms 499-Q for May and
   August 2009 in a timely manner.

   See Supp. LOI Response. TransAria states that it has no standard pricing
   or terms of service. Id.

   See LOI Response at 3.

   Id. at Attachment 6.

   Id. at 3.

   47 U.S.C. S: 254(d).

   47 C.F.R. S: 54.706(b). See also Federal-State Joint Board on Universal
   Service,  Report and Order and Second Further Notice of Proposed
   Rulemaking, 17 FCC Rcd 24952, 24969-74, P:P: 29-39 (2002) ("Interim
   Contribution Order").

   The Commission's rules define "interconnected VoIP" service as a service
   that:

   (1) Enables real-time two-way voice communications;

   (2) Requires a broadband connection from the user's location;

   (3) Requires Internet protocol-compatible customer premises equipment
   (CPE); and

   (4) Permits users generally to receive calls that originate on the public
   switched telephone network and to terminate calls to the public switched
   telephone network.

   47 C.F.R. S: 9.3.

   See 47 U.S.C. S: 254(d) ("Any other provider of interstate
   telecommunications may be required to contribute to the preservation and
   advancement of universal service if the public interest so requires.");
   Universal Service Contribution Methodology, Report and Order and Notice of
   Proposed Rulemaking, 21 FCC Rcd 7518, 7538-43, P:P: 38-49 (2006)
   (extending section 254(d) permissive authority to require interconnected
   VoIP providers to contribute to the USF) ("2006 Contribution Methodology
   Order"), aff'd in part, vacated in part sub nom, Vonage Holdings Corp. v.
   FCC, 489 F.3d 1232, 1244 (D.C. Cir. 2007); Federal-State Joint Board on
   Universal Service; IP-Enabled Services, Final Rule, 71 FR 38781 (2006).

   2006 Contribution Methodology Order, 21 FCC Rcd at 7548-49, P:P: 60-61.
   The 2006 Contribution Methodology Order also required that interconnected
   VoIP providers file a FCC Form 499-Q reporting projected revenues for the
   fourth quarter of 2006 by August 1, 2006. See id. However, TransAria
   apparently did not begin providing service until after the August 1, 2006
   499-Qs were due.

   47 C.F.R. S: 54.711. Carriers subject to the rule must file the Quarterly
   Worksheet to show projected revenues. See Quarterly Worksheet at 1.
   Carriers, including interconnected VoIP providers, must submit their
   annual Worksheets no later than April 1 of each year. See Annual Worksheet
   at 1.

   47 C.F.R. S: 54.701(a).

   47 C.F.R. S: 54.711(a) ("The Commission shall announce by Public Notice
   published in the Federal Register and on its website the manner of payment
   and the dates by which payments must be made.") See, e.g., "Proposed
   Second Quarter 2006 Contribution Factor," Public Notice, 21 FCC Rcd 2379
   (Wireline Comp. Bur. 2006) ("Contribution payments are due on the date
   shown on the administrator invoice.").

   Sixty days prior to the start of each quarter, USAC is required to provide
   the Commission with a projection of the high cost, low income, schools and
   libraries, and rural health care funding requirements for the following
   quarter. See www.universalservice.org/overview/filings. Based on USAC's
   projection of the needs of the USF, and revenue projections from the
   registered carriers subject to universal service requirements, the
   Commission establishes a specific percentage of interstate and
   international end-user revenues that each subject telecommunications
   provider must contribute toward the USF. This percentage is called the
   contribution factor. The contribution factor, and, consequently, the
   amount owed to the USF by each affected telecommunications company,
   changes each quarter, depending on the needs of the USF and
   carrier-provided revenue projections. See
   www.fcc.gov/wcb/universal_service/quarter. Thus, in cases where a carrier,
   such as TransAria, fails to file required Worksheets reporting its revenue
   projections in a timely fashion, its revenues are excluded from the
   contribution base from which universal assessments are derived, and the
   economic burden of contributing falls disproportionately on carriers that
   have satisfied their reporting obligations.

   47 U.S.C. S: 254(d).

   Pub. L. No. 101-336, S: 401, 104 Stat. 327, 366-69 (1990) (adding section
   225 to the Act).

   See Telecommunications Relay Services and the Americans with Disabilities
   Act of 1990, Third Report and Order, 8 FCC Rcd 5300, 5301, P: 7 (1993)
   (TRS III Order).

   See 47 C.F.R. S: 64.604(c)(5)(iii).

   See IP-Enabled Services, Report and Order, 22 FCC Rcd 11275, 11294 P: 36
   (2007).

   IP-Enabled Services, Final Rule, 72 FR 43546 (2007), quoting 47 U.S.C. S:
   225(b)(1).

   47 U.S.C. S: 251(e)(1).

   47 U.S.C. S: 251(e)(2).

   47 C.F.R. S: 52.17(a).

   47 C.F.R. S: 52.32. Unlike universal service, TRS and the cost recovery
   mechanism for the North American Numbering Plan, there is no "fund" for
   Local Number Portability. Neustar, which acts as the Local Number
   Portability Administrator, recovers the costs of implementing the Act's
   requirements for local number portability from telecommunications
   carriers. See, e.g.,  http://www.npac.com/home/lnpoverview.shtml; 
   http://www.neustar.biz/interoperability/lnp.cfm (providing general
   information concerning LNP administration).

   See Matter of Telephone Number Requirements for IP-Enabled Services
   Providers, Local Number Portability Porting Interval and Validation
   Requirements, IP-Enabled Services, Telephone Number Portability, Final
   Regulatory Flexibility Analysis Numbering Resource Optimization, Report
   and Order, Declaratory Ruling, Order on Remand, and Notice of Proposed
   Rulemaking, 22 FCC Rcd 19531, 19532 P: 1 (2007); Matter of IP-Enabled
   Services, Telephone Number Portability, Numbering Resource Optimization,
   Final Rule, 73 FR 9463 (2008).

   2006 Contribution Methodology Order, 21 FCC Rcd at 7548, P: 60.

   See 47 C.F.R. S: 54.708; Instructions to the Telecommunications Reporting
   Worksheet, FCC 499-A, at 5, 32 (Nov. 2007) (a provider of interstate and
   international telecommunications whose annual universal service
   contribution is expected to be less than $10,000 is not required to
   contribute to the USF; however, interconnected VoIP providers that meet
   the de minimis standard must file FCC Forms 499-A).

   Id.

   See LOI Response at 3.

   See Letter from Tarig Rahamtalla, USAC, to TransAria, dated December 31,
   2007.

   TransAria failed to register with USAC in a timely manner and therefore
   was never issued invoices for the months of January 2007 through June
   2008. The fact that TransAria did not receive invoices during this time
   period is irrelevant. Indeed, TransAria did not receive any invoices prior
   to July 2008 because of its failure to comply with the Commission's
   directive in the 2006 Contribution Methodology Order to register. See
   supra note 24. The Act and our rules do not condition payment on receipt
   of an invoice or other notice from the NANP administrator. See Globcom,
   Inc., Notice of Apparent Liability, 18 FCC Rcd 19893, 19896, P: 5, n.22
   (2003).

   See Aug. 6, 2009 Supp. LOI Response at 2; 47 C.F.R. S: 9.5(e)(3).

   47 C.F.R. S: 9.5(e)(3).

   Id.

   47 C.F.R. S:S: 52.17, 52.32, 54.706, 54.708, 54.711, 64.604 and 64.1195.

   47 C.F.R. S: 9.5(e)(3).

   See 47 C.F.R. S: 1.80(b)(3).

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                             WASHINGTON, D.C. 20554