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

In the Matter of                 )
                                )    File No. ENF-00-0003
Global                  Crossing )
Telecommunications, Inc.

                         CONSENT DECREE


The Enforcement Bureau of the Federal Communications Commission 
(FCC or Commission), joined by the Office of General Counsel of 
the Commission, hereby enter into this Consent Decree with Global 
Crossing Telecommunications, Inc. (formerly Frontier 
Communications Services, Inc. (Global Crossing)) for the purpose 
of terminating an informal investigation by Commission staff.  
The investigation at issue concerned whether further enforcement 
action was warranted against Global Crossing in view of the 
Commission's determination that Global Crossing violated section 
276 of the Communications Act of 1934, as amended, and the 
Commission's rules, in connection with its failure to pay per-
call compensation to certain payphone owners.


     2.In the Payphone Orders,1 the Commission adopted rules and 
policies governing the payphone industry to implement section 276 
of the Telecommunications Act of 1996 (1996 Act). As part of that 
proceeding, the Commission concluded that interexchange carriers 
(IXCs) receiving calls originating from payphones should 
compensate the PSP because the IXCs were the primary 
beneficiaries of such calls. The Commission further concluded 
that local exchange carrier (LEC) PSPs would be eligible to 
receive compensation for completed calls originated from their 
payphones once the LEC ``was able to certify'' that it had 
complied with compensation eligibility prerequisites set forth in 
the Order on Reconsideration.2

     3.Bell Atlantic and other LEC PSPs submitted to Global 
Crossing letters certifying that they had satisfied the 
prerequisites set forth in the Order on Reconsideration. Global 
Crossing refused to compensate the LEC PSPs on the basis of these 
letters of certification, arguing that these LEC PSPs were not 
eligible for such compensation.  Bell Atlantic and other LEC PSPs 
filed with the Commission formal complaints alleging that Global 
Crossing had failed to pay payphone compensation.  On September 
24, 1999 and November 8, 1999, the Common Carrier Bureau issued 
Orders resolving these complaints, finding that Global Crossing 
was liable to the LEC PSPs for payphone compensation as required 
by the Commission's Payphone Orders.3

     4.   Global Crossing filed Applications for Review of the 
          two Common Carrier Bureau Orders.  Both applications 
          were resolved in a single Order on Review,4 in which 
          the Commission affirmed the Common Carrier Bureau's 
          orders.  In addition, the Commission stated: 

          Having reviewed the facts and history of 
          these disputes reflected in the Bureau 
          Orders, we are troubled by self-help actions 
          taken by [Global Crossing] in an apparent 
          effort to delay payment of payphone 
          compensation mandated by the Act and our 
          rules.  As detailed in the Bureau Orders, the 
          parties met with Bureau staff in June of 1998 
          to discuss [Global Crossing's] obligations to 
          pay payphone compensation, and specifically 
          the issues raised in these complaints.  
          During these meetings, the staff stated that 
          the Payphone Orders clearly mandated that 
          IXCs must compensate a LEC payphone service 
          provider upon receipt of the LECs' 
          certification of eligibility without further 
          inquiry or requirements.  As discussed above, 
          it was made clear at that time that if 
          [Global Crossing] believed that a LEC had 
          failed to satisfy its prerequisites to 
          payphone compensation, the IXC was obligated 
          to file a complaint with the Commission to 
          that effect.  Instead, [Global Crossing] 
          continued to engage in self-help by simply 
          refusing payment without bringing the matter 
          to the Commission for resolution.5

The Order on Review directed the Commission's Enforcement Bureau 
``to investigate whether further enforcement action is warranted 
against [Global Crossing] for apparent knowing or repeated 
violations of Commission rules in relation to the facts in these 
complaint proceedings.''6  Global Crossing strongly disagrees 
with the Commission's conclusions and description of the history 
of the dispute, and accordingly has filed a Petition for Review 
of the Commission's Order in the U.S. Court of Appeals for the 
District of Columbia Circuit. That petition is currently pending 
before the Court.

     5.   Pursuant to the Commission's instructions in the Order 
          on Review, the Enforcement Bureau began an informal 
          investigation into these matters on May 23, 2000.7 

     6.   The Bureau and Global Crossing wish to resolve this 
          investigation through the entry of this Consent Decree 
          without further administrative proceedings or 


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

     1.   (a)  ``Global Crossing'' or the ``Company'' shall mean 
Global Crossing Telecommunications, Inc. and its interexchange 
carrier affiliates, with the exception of Frontier Communications 
of America, Inc.

          (b)  ``FCC" or "Commission'' shall mean the Federal 
               Communications Commission and all Bureaus and 
               offices of the Commission, including the 
               Enforcement Bureau.

          (c)  ``Parties'' shall mean the FCC Enforcement Bureau 
               and Office of General Counsel and Global Crossing.

          (c)  ``Adopting Order'' shall mean an Order of the 
               Enforcement Bureau adopting the terms and 
               conditions of this Consent Decree.

          (d)  ``Effective Date'' shall mean the date on which 
               the Enforcement Bureau adopts the Adopting Order.

          (f)  ``Appellate Litigation'' shall mean the proceeding 
               Global Crossing Telecommunications, Inc. v. 
               Federal Communications Commission and United 
               States of America, No. 00-1204 (D.C. Cir.).

          (g)  ``PSP'' shall mean payphone service provider. 

          (h)  ``Bureau'' shall mean the Enforcement Bureau of 
               the FCC.

          (i)  ``Office of General Counsel'' shall mean the 
               Office of General Counsel of the Commission.


     8.   The Parties agree that the provisions of this Consent 
       Decree shall be subject to final approval through 
       incorporation of such provisions by reference in an 
       Adopting Order, which shall immediately terminate the 

     9.   As of the Effective Date, the Adopting Order and this 
       Consent Decree shall have the same force and effect as 
       any other order entered by the Commission, whether 
       directly or through properly delegated authority.  Any 
       violation of the terms of this Consent Decree shall 
       entitle the FCC to exercise any and all rights, and to 
       seek any and all remedies, authorized by law for the 
       enforcement of an order entered by the Commission.  The 
       Parties agree that any provisions of this Consent Decree 
       affected by or inconsistent with any subsequent rule or 
       order adopted by the Commission will be superseded by any 
       such subsequent rule or order.

     10.  Global Crossing admits the jurisdiction of the 
       Commission for purposes of this Consent Decree and any 
       Adopting Order.

     11.  Global Crossing agrees to waive any further procedural 
       steps and any rights it may have to seek judicial review 
       or otherwise to challenge or contest the validity of this 
       Consent Decree or the Adopting Order.  Global Crossing 
       waives any rights it may have under any provision of the 
       Equal Access to Justice Act, 5 U.S.C.  504.

     12.  The Bureau and Office of General Counsel acknowledge 
       that Global Crossing has sought review of the Order on 
       Review in the Appellate Litigation.  The Bureau and the 
       Office of General Counsel acknowledge that Global 
       Crossing is entering into this Consent Decree entirely 
       without prejudice to any position that Global Crossing 
       may take in the Appellate Litigation.  The Office of 
       General Counsel agrees that it shall not rely upon this 
       Consent Decree or the Adopting Order for any purpose in 
       the Appellate Litigation.  In the event that any 
       intervenor in the Appellate Litigation seeks to rely on 
       the Consent Decree or the Adopting Order, the Office of 
       General Counsel agrees promptly to inform the Court that 
       in its view, neither document should have any bearing on 
       the outcome of the Appellate Litigation.

     13.  The Parties agree that by entering into this Consent 
       Decree, Global Crossing does not admit any legal or 
       equitable liability or any wrongdoing. Nothing herein 
       shall constitute findings as to the matters raised in the 
       investigation or constitute evidence of liability in any 
       section 208 complaint regarding Global Crossing's 
       compliance with section 276 of the Act.

     14.  In light of the covenants and representations contained 
       in this Consent Decree, and in express reliance thereon, 
       the Parties agree and acknowledge that the Consent Decree 
       shall constitute a final settlement of this investigation 
       without any finding of liability on the part of Global 
       Crossing.   The Bureau agrees that, based on the facts 
       developed in its investigation and the absence of 
       material new evidence related to this matter, it will not 
       use the facts developed in the investigation through the 
       date of this Consent Decree, or the existence of this 
       Consent Decree, to institute on its own motion any new 
       proceedings, formal or informal, or to take any actions 
       on its own motion against Global Crossing covering the 
       matters that were the subject of the investigation. 
       Consistent with the foregoing, nothing in this Consent 
       Decree limits the Commission's authority to consider any 
       complaint that may be filed pursuant to section 208 of 
       the Communications Act, as amended, 47 U.S.C.  208, and 
       to take any action in response to such complaint.

     15.  Global Crossing 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 Decree and the Order 
       adopting this Consent Decree, provided the Order adopts 
       the Consent Decree without change, addition, or 

     16.  The Parties agree that the terms and conditions of this 
       Consent Decree shall remain in effect for thirty-six (36) 
       months from the Effective Date.

     17.  Global Crossing shall, beginning with its payments of 
       per-call compensation for completed calls carried in the 
       fourth quarter of 2000 and for each quarter thereafter, 
       provide to each eligible PSP a list of the 800 numbers 
       which traversed Global Crossing's network upon which it 
       paid per-call compensation for that quarter and a list of 
       the 800 numbers which traversed the Global Crossing 
       network upon which it did not pay per-call compensation 
       for that quarter.  For those 800 numbers upon which it 
       did not pay per-call compensation, Global Crossing shall 
       also provide the name of the carrier to whom all 800 
       number traffic was routed by Global Crossing.  Global 
       Crossing's obligations under this paragraph shall not be 
       affected by the outcome of the Appellate Litigation.  
       Moreover, unless and until the U.S. Court of Appeals 
       holds that the Commission erred in its determination of 
       the requirements for compensation of PSPs, Global 
       Crossing shall abide by the Commission's prior ruling in 
       determining which PSPs are eligible for compensation.

     18.  Global Crossing agrees to deposit into an interest-
       bearing escrow account the sum of eighty-thousand dollars 
       ($80,000).  Such deposit shall be made within ten (10) 
       business days of the entry of an Adopting Order. Global 
       Crossing shall promptly inform the Commission of the 
       identity of the escrow agent and the account number for 
       the escrow account.

     19.  In the event that the Court of Appeals holds that the 
       Commission erred in its determination of the requirements 
       for compensation of PSPs, Global Crossing may terminate 
       the escrow agreement at such time as the Court's order 
       becomes final and unappealable.  In that event, Global 
       Crossing may retain the principal and any accumulated 
       interest thereon.

     20.  In the event that the Court of Appeals affirms the 
       Order on Review, Global Crossing shall, within ten (10) 
       business days of any dispositive order in the Appellate 
       Litigation having become final and unappealable, insure 
       that the Escrow Agent transfers to the United States 
       Treasury the principal and any accumulated interest 
       thereon then subject to the escrow arrangement, as a 
       voluntary payment on behalf of Global Crossing to the 
       United States Treasury.  Payment shall be made by check 
       or money order drawn to the order of the Federal 
       Communications Commission, shall reflect File No. ENF-00-
       0003, and shall be mailed to the Forfeiture Collection 
       Section, Finance Branch, Federal Communications 
       Commission, P.O. Box 73482, Chicago, Illinois 60673-7482.

     21.  This consent decree may be signed in counterparts.


By: ___________________________    By: 
   David H. Solomon                  Michael J. Shortley, III
   Chief, Enforcement Bureau         Senior Associate General
                                     Counsel & Senior Director-
                                     Regulatory Services
                                     Global    Crossing     North 
America, Inc.

By: ___________________________    
   Christopher J. Wright             
        General Counsel


1 Implementation  of  the  Pay  Telephone  Reclassification  and 
Compensation Provisions of the  Telecommunications Act of  1996, 
First Report and  Order, 11  FCC Rcd 20,541  (1996) (Report  and 
Order); Order  on  Reconsideration,  11 FCC  Rcd  21,233  (1996) 
(Order on Reconsideration), aff'd in  part and remanded in  part 
sub nom. Illinois Public  Telecomm. Ass'n v.  FCC, 117 F.3d  555 
(D.C. Cir. 1997).

2 Order on Reconsideration at para. 131.

3 In the Matter  of Bell-Atlantic Delaware,  et al. v.  Frontier 
Communications, et al., Memorandum Opinion and Order, 14 FCC Rcd 
16,050 (Com.  Car.  Bur. 1999)  (Bell  Atlantic Order);  In  the 
Matter of Ameritech Illinois, U S West Communications, Inc.,  et 
al., v. MCI  Telecommunications Corporation, Memorandum  Opinion 
and Order, 14  FC Rcd  18,643 (Com. Car.  Bur. 1999)  (Ameritech 
Order).  The Bell Atlantic Order and Ameritech Order are jointly 
referred to as the Bureau Orders.

4 In the Matter  of Bell Atlantic Delaware,  et al. v.  Frontier 
Communications, et  al.,  Order  on Review,  15  FCC  Rcd  7,475 

5 Order on Review at para. 11.

6 Order on Review at para. 11.

7 See Letter from David H. Solomon, Chief, Enforcement Bureau to 
Danny E. Adams and Steven A. Augustino, Kelley Drye and  Warren, 
LLP, and  Michael J.  Shortley  and Martin  T. McCue  of  Global 
Crossing North  America,  Inc., dated  May  23, 2000  (``May  23 
Solomon Letter'').