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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of ) File No. EB-04-IH-0522
)
)
Teletronics, Inc. ) NAL/Acct. No. 200532080138
)
)
Apparent Liability for )
Forfeiture )
NOTICE OF APPARENT LIABILITY
FOR FORFEITURE AND ORDER
Adopted: July 25, 2005 Released: July
25, 2005
By the Commission:
I. INTRODUCTION
1. In this Notice of Apparent Liability for Forfeiture
(``NAL''), we find that Teletronics, Inc. (``Teletronics''), a
telecommunications carrier that has been operating and at least
indirectly benefiting from federal programs supporting the
telecommunications industry for years, apparently failed to meet
its statutory and regulatory obligations related to those
programs. Based upon our review of the facts and circumstances
surrounding this matter, we conclude that Teletronics is
apparently liable for a total forfeiture of $692,000.
2. Specifically we find Teletronics has apparently
violated sections 64.1195(a) of the Commission's rules by
willfully and repeatedly failing to register with the Commission
from April 2, 2001 to the current date.1 We also conclude that
Teletronics has apparently violated 54.711(a),
64.604(c)(5)(iii)(B), and 52.17(b) of our rules by failing to
submit certain Telecommunications Reporting Worksheets from 1999
to the current date. 2 We further find that Teletronics has
apparently violated sections 254(d) and 251(e)(2) of the
Communications Act of 1934, as amended (the ``Act''),3 and
sections 54.706(a), 64.604(c)(5)(iii)(A) and 52.17(a) of the
Commission's rules by willfully and repeatedly failing to
contribute to the Universal Service Fund (``USF''),
Telecommunications Relay Service (``TRS'') Fund, and cost
recovery mechanisms for North American Numbering Plan
Administration (``NANPA'').4 Finally, we find that Teletronics
has apparently violated sections 1.1154 and 1.1157(b)(1) of the
Commission's rules by willfully and repeatedly failing to pay
regulatory fees to the Commission.5
3. We order Teletronics to submit within thirty days,
either as part of its response to this NAL or separately, a
report, supported by a sworn statement or declaration under
penalty of perjury of a corporate officer, setting forth in
detail its plan to come into compliance with the relevant payment
and reporting rules discussed herein. We further order
Teletronics to file with the Universal Service Administrative
Company (``USAC'') within thirty days all Annual
Telecommunications Reporting Worksheets required under the
Commission's rules from the date Teletronics began providing
telecommunications service in the United States to the date of
this NAL.6
II. BACKGROUND
4. Teletronics, Inc.,
also doing business as Telectronics Services, Inc., is an Ohio-
based telecommunications provider that offers integrated
telecommunications systems to business users. 7 In 1999, it
began reselling intrastate, interstate, and international long-
distance service purchased from MCI and other carriers as part of
its packaged offerings.8
5. The Commission is charged by Congress with regulating
interstate and international telecommunications and ensuring that
providers of such telecommunications comply with the requirements
imposed on them by the Act and our rules.9 The Commission also
has been charged by Congress to establish, administer and
maintain various telecommunications regulatory programs, which
are described in more detail below, and to fund these programs
through assessments on the telecommunications providers that
benefit from them. To accomplish these goals, the Commission
established ``a central repository of key facts about carriers''
through which it could monitor the entry and operation of
interstate telecommunications providers to ensure, among other
things, that they are qualified, do not engage in fraud, and do
not evade oversight.10 First and foremost, Commission rules
require that, upon entry or anticipated entry into
telecommunications markets, telecommunications carriers must
register by submitting information on an FCC Form 499-A, also
known as a Telecommunications Reporting Worksheet (``Annual
Worksheet'' or ``Form 499-A''). The Commission requires
telecommunications providers to submit financial information on
the Worksheets to enable the Commission to determine and collect
the statutorily mandated assessments.11
6. The Telecommunications Act of 1996 codified Congress's
historical commitment to promote universal service to ensure that
consumers in all regions of the nation have access to affordable,
quality telecommunications services.12 In particular, 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.''13 In implementing this
Congressional mandate, the Commission directed all
telecommunications carriers providing interstate
telecommunications services and certain other providers of
interstate telecommunications to contribute to the Universal
Service Fund based upon their interstate and international end-
user telecommunications revenues.14 Failure by some providers to
pay their share into the Fund skews the playing field by giving
non-paying providers an economic advantage over their
competitors, who must then shoulder more than their fair share of
the costs of the Fund.
7. Section 225(b)(1) of the Act, which codifies Title IV
of the Americans with Disabilities Act of 1990, 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.''15 To
that end, the Commission established the TRS Fund to reimburse
TRS providers for the costs of providing interstate
telecommunications relay services.16 Pursuant to section
64.604(c)(5)(iii)(A) of the Commission's rules, every carrier
that provides interstate telecommunications services must
contribute to the TRS Fund based upon their interstate end-user
revenues.17
8. 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.18 Section 251(e)(2) of the Act requires that
``[t]he cost of establishing telecommunications numbering
administration arrangements . . . be borne by all
telecommunications carriers on a competitively neutral basis as
determined by the Commission.''19 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.20
9. Finally, pursuant to section 9(a)(1) of the Act and
section 1.1151 of the Commission's rules, interstate
telecommunications carriers and other providers must pay
regulatory fees to the Commission to cover the costs of certain
regulatory activities.21 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.22 Such
fees must be paid on an annual basis,23 and failure to do so
subjects a carrier to late payment penalties, as well as possible
revocation of its operating authority.24 Further, under the
Commission's ``red light rule,'' action will be withheld on any
application to the Commission or request for authorization made
by any entity that has failed to pay when due its regulatory fees
or any other program payment, such as USF contributions, and if
payment or payment arrangements are not made within 30 days from
notice to the applicant, such applications or requests will be
dismissed.25
10. The Commission has established specific procedures to
administer the programs for universal service, telecommunications
relay services, numbering administration and regulatory fees.
The requirement to register discussed above is essential to the
fulfillment of the universal service and other program missions
because it identifies the company as potentially subject to
various program requirements and enables the program
administrators to oversee the company's compliance with those
requirements. Upon submission of a Form 499-A registration, the
carrier is issued a filer identification number by USAC, which is
then associated with further filings by the company and is used
to track the carrier's contributions and invoices.
11. In addition to its obligation to register, a carrier is
required to file Worksheets for the purpose of determining its
USF, TRS, NANPA, and regulatory fee program payments, and, with
certain exceptions, to file quarterly short-form Worksheets to
determine monthly universal service contribution amounts. These
periodic filings trigger a determination of liability, if any,
and subsequent billing and collection, by the entities that
administer the regulatory programs. For example, USAC uses the
revenue projections submitted on the quarterly filings to
determine each carrier's universal service contribution amount.26
Carriers are required to pay their monthly USF contribution by
the date shown on their invoice.27 The Commission's rules
explicitly warn contributors that failure to file their forms or
submit their payments potentially subjects them to enforcement
action.28 The TRS Administrator, the NANPA Billing and
Collection agent, and the Commission use the prior year's revenue
information provided on the Annual Worksheet to determine amounts
owed for the TRS, NANPA, and regulatory fee programs,
respectively.29
12. In 2004, the Enforcement Bureau (``Bureau'') audit
staff sought to identify resellers of telecommunications service
that failed to register as telecommunications service providers
with the Commission and, thus, may also have failed to satisfy
various Commission program requirements.30 To identify such
resellers, the Bureau audit staff compared lists of resellers
provided by wholesale service providers against the Commission's
central repository of registered telecommunications service
providers with filer identification numbers. If a reseller did
not appear to have an identification number, the audit staff sent
an inquiry to that reseller. On March 30, 2004 and June 18,
2004, the Bureau's audit staff sent letters to Teletronics
requesting information pertaining to its compliance with the
Commission's registration requirement.31 On August 17, 2004,
following correspondence between Teletronics' counsel and audit
staff clarifying the nature of Teletronics' filing obligations,
Teletronics' counsel told a staff auditor in a telephone
conversation that Teletronics would file a Worksheet by September
16, 2004.32 To the date of this NAL, Teletronics has not yet
registered or filed any initial, annual or quarterly Worksheets.
13. The Bureau, on October 28, 2004, issued a letter of
inquiry (``LOI'') directing Teletronics, among other things, to
submit a sworn written response to a series of questions relating
to Teletronics' apparent failure to satisfy its registration,
filing and payment obligations.33 Teletronics filed its
responses on November 24, 2004, and January 3, 2005.34 The
Teletronics November 24 Letter confirms that Teletronics did not
file any Worksheets or make any contributions or regulatory fee
payments.35
III. DISCUSSION
14. Under section 503(b)(1)(B) of the Act, any person who
is determined by the Commission to have willfully or repeatedly
failed to comply with any provision of the Act or any rule,
regulation, or order issued by the Commission shall be liable to
the United States for a forfeiture penalty.36 To impose such a
forfeiture penalty, the Commission must issue a notice of
apparent liability, the notice must be received, and the person
against whom the notice has been issued must have an opportunity
to show, in writing, why no such forfeiture penalty should be
imposed.37 The Commission will then issue a forfeiture if it
finds by a preponderance of the evidence that the person has
violated the Act or a Commission rule.38 As set forth below, we
conclude under this standard that Teletronics is apparently
liable for a forfeiture for its apparent willful and repeated
violations of sections 254(d) and 251(e)(2) of the Act39 and
sections 64.1195(a), 54.711(a), 64.604(c)(5)(iii), 52.17,
54.706(a), 1.1154, and 1.1157(b)(1) of the Commission's rules.40
15. The fundamental issues in this case are whether
Teletronics apparently violated the Act and the Commission's
rules by: (1) willfully or repeatedly failing to register with
the Commission; (2) willfully or repeatedly failing to file
Telecommunications Reporting Worksheets; (3) willfully or
repeatedly failing to make requisite contributions toward the
Universal Service and TRS Funds, and NANPA cost recovery
mechanisms; and (4) willfully or repeatedly failing to pay
regulatory fees to the Commission. We answer these questions
affirmatively. Based on a preponderance of the evidence,
therefore, we conclude that Teletronics is apparently liable for
a forfeiture of $692,000 for apparently willfully and repeatedly
violating sections 254(d) and 251(e)(2) of the Act41 and sections
64.1195(a), 54.711(a), 64.604(c)(5)(iii), 52.17, 54.706(a),
1.1154, and 1.1157(b)(1) of the Commission's rules.42
16. Specifically we propose the following forfeitures for
apparent violations within the last year: (1) $100,000 for
failure to register; (2) $250,000 for failure to file five annual
or quarterly Telecommunications Reporting Worksheets; (3)
$308,000 for failure to make any monthly USF contributions; (4)
$14,000 for failure to pay the 2004 TRS Fund contribution; (5)
$10,000 for failure to make its 2005 NANPA contribution; and (6)
$10,000 for failure to make its 2004 regulatory fee program
payment. Although we propose forfeitures only for apparent
violations within the last year, we discuss below the history of
Teletronics' noncompliance in prior years as useful background
and to demonstrate the scope of Teletronics' misconduct.
A. Registration with the Commission
17. We conclude that Teletronics has apparently violated
section 64.1195(a) of the Commission's rules by willfully and
repeatedly failing to register with the Commission from 2001 to
the present.43 Teletronics' failure to register constitutes a
clear violation of a vital Commission rule. Section 64.1195(a)
of the Commission's rules unambiguously requires that all
carriers that provide, or plan to provide, interstate
telecommunications services register with the Commission by
submitting specified information.44 Although Teletronics began
to resell interstate and international service at some point in
1999, it has never registered by filing an initial
Telecommunications Reporting Worksheet since the effective date
of that obligation, April 2, 2001. It has persisted in this
failure even after it received the Bureau's March 30 Audit Letter
and June 18 Audit Letter. Moreover, it specifically represented
through counsel to the Bureau staff auditor that it would
register by September 16, 2004, yet it admitted in the
Teletronics November 24 Letter that it had not registered. As a
direct result of this misconduct, Teletronics has operated for
years without participation in any of the programs tied to
registration.45
18. We view Teletronics' failure to register since April
2, 2001 as a serious violation of its responsibilities under the
Act and our rules. A carrier's compliance with the Commission's
registration requirement is central to the administration of the
Universal Service, TRS and NANPA programs, collection of
regulatory fees, and accomplishment of Congress' objectives in
sections 9(a)(1), 254(d), 225(b)(1), and 251(e) of the Act. As
we noted above, a carrier's duty to register upon entry, or
anticipated entry, into interstate telecommunications markets is
essential to the fulfillment of the USF and other program
missions because it identifies the company to the various program
administrators and brings the company within the purview and
oversight of these administrators. If a carrier never identifies
itself as a telecommunications provider by properly registering
under the Commission's rules, then neither the Commission nor the
various program administrators can ascertain whether that carrier
has fulfilled other regulatory obligations, including the
requirement that carriers file Worksheets and contribute to USF,
TRS, NANPA and regulatory fee programs. Moreover, the program
administrators have no basis upon which to invoice the carrier
for contributions. A telecommunications carrier that fails to
register thus can operate outside of the Commission's oversight
and evade its federal obligations to contribute toward the vital
programs linked to registration. Based on a preponderance of the
evidence, therefore, we find that Teletronics has apparently
violated section 64.1195(a) of the Commission's rules by
willfully and repeatedly failing to register with the Commission.
19. Teletronics has failed to cure this apparent violation
despite the Bureau's repeated inquiries. We note that, to the
extent Teletronics refuses to comply with the Commission's rules
on a going-forward basis, it may subject itself to additional
enforcement action. In addition, we note that, to the extent
Teletronics is found to be delinquent on any debt owed to the
Commission (e.g., has failed to pay all of its USF
contributions), the Commission will not act on, and may dismiss,
any application or request for authorization filed by
Teletronics, in accordance with the agency's ``red light''
rules.46
B. Submission of Telecommunications Reporting Worksheets
20. We conclude that Teletronics has apparently violated
sections 54.711(a), 64.604(c)(5)(iii)(B) and 52.17(b) of the
Commission's rules by willfully and repeatedly failing to file
annual and quarterly Telecommunications Reporting Worksheets.
Teletronics has violated these rules since 1999 when it began
providing telecommunications service.47
21. Sections 54.711(a), 64.604(c)(5)(iii)(B) and 52.17(b)
of the Commission's rules each clearly establish a carrier's
obligation to file periodic Telecommunications Reporting
Worksheets. 48 A carrier's failure to file these Worksheets as
required has serious implications for the USF, TRS, NANPA and
regulatory fee programs. As we noted above, the filing of a
Telecommunications Reporting Worksheet prompts a determination of
liability for, and subsequent billing and collection of,
regulatory fees and contributions by the various administrators
of the Universal Service and TRS Funds, and NANPA cost recovery
mechanisms. With regard to universal service in particular, the
failure of a carrier such as Teletronics to abide by its federal
filing obligation has a direct and profound detrimental impact on
universal service by removing from the base of contributions
telecommunications revenues that otherwise should be included,
thereby shifting to compliant carriers additional economic
burdens associated with universal service.49 Consequently, a
carrier's failure to file required Worksheets 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.''50 Viewed in this context, the
Telecommunications Reporting Worksheet is not simply an
administrative tool, but a fundamental and critical component of
the Commission's universal service, TRS, NANPA and regulatory fee
programs.
22. Since the date Teletronics began providing interstate
and international telecommunications service in 1999, it had an
obligation to file annual and quarterly Telecommunications
Reporting Worksheets in order to participate in the applicable
USF, TRS, NANPA and regulatory fee programs. Moreover,
Teletronics has failed to cure these deficiencies despite the
Bureau's repeated contacts. Based on a preponderance of the
evidence, therefore, we find that Teletronics has apparently
violated sections 54.711(a), 64.604(c)(5)(iii)(B) and 52.17(b) of
the Commission's rules by willfully and repeatedly failing to
file annual and quarterly Telecommunications Reporting
Worksheets, since it began providing telecommunications service
in 1999, to the date of this NAL. The NAL proposes a forfeiture
for Teletronics' failure to file the worksheets due August 1 and
November 1, 2004 and February 1, April 1, and May 1, 2005.
C. Failure to Make Universal Service Contributions
23. We further conclude that Teletronics has apparently
violated section 254(d) of the Act and section 54.706(a) of the
Commission's rules by willfully or repeatedly failing to make any
contributions to universal service support mechanisms.51 Section
54.706(c) of the Commission's rules unambiguously directs that
``entities [providing] interstate telecommunications to the
public . . . for a fee . . . contribute to the universal service
support programs.''52 ``Interstate telecommunications'' include,
among other things, ``resale of interstate services'' such as
those provided by Teletronics.53 During the relevant period,
Teletronics was required, pursuant to section 54.706(b) of the
Commission's rules, to contribute to universal service mechanisms
based upon either its historical or projected revenues.54
Teletronics admits, however, that it has not made any universal
service payments.55 As we previously have stated:
[c]arrier nonpayment of universal service
contributions undermines the efficiency and
effectiveness of the universal service support
mechanisms. Moreover, delinquent carriers may
obtain a competitive advantage over carriers
complying with the Act and our rules. We consider
universal service nonpayment to be a serious threat
to a key goal of Congress and one of the
Commission's primary responsibilities.56
Since Teletronics admits it has not made any universal service
payments, we find that it has apparently violated section 254(d)
of the Act and section 54.706(a) of the Commission's rules by
willfully and repeatedly failing to make required universal
service contributions, including twelve such failures within the
past year which are the subject of this NAL.
D. Failure to Make Telecommunications Relay Service
Contributions
24. We also find that Teletronics has apparently violated
section 64.604(c)(5)(iii)(A) of the Commission's rules by
willfully and repeatedly failing to make any required
contributions to the interstate TRS Fund.57 As an interstate
telecommunications carrier, Teletronics was obligated to
contribute to the TRS Fund on the basis of its interstate end-
user telecommunications revenues.58 A carrier's contribution to
the TRS Fund is based upon its subject revenues for the prior
calendar year and a contribution factor determined annually by
the Commission.59 Subject carriers must make TRS contributions
on an annual basis, with certain exceptions.60 By its own
admission, Teletronics has not made any TRS payments.61 We
therefore find that it has apparently violated section
64.604(c)(5)(iii)(A) of the Commission's rules by willfully and
repeatedly failing to make required TRS contributions, including
one such failure in the past year which is the subject of this
NAL.
E. Failure to Make Numbering Administration Contributions
25. We further find that Teletronics has apparently
violated section 251(e)(2) of the Act and section 52.17(a) of the
Commission's rules62 by willfully and repeatedly failing to make
any required contributions toward the costs of numbering
administration As a telecommunications carrier, Teletronics was
obligated to contribute to NANPA cost recovery mechanisms on the
basis of its end-user telecommunications revenues during this
period.63 As Teletronics admits, it has not made any NANPA
payments.64 We therefore conclude that it has apparently
violated section 251(e)(2) of the Act and section 52.17(a) of the
Commission's rules by willfully and repeatedly failing to make
required NANPA contributions, including one such failure in the
past year which is the subject of this NAL.
F. Failure to Pay Regulatory Fees
26. We finally conclude that Teletronics has apparently
violated sections 1.1154 and 1.1157(b)(1) of the Commission's
rules65 by willfully and repeatedly failing to pay required
regulatory fees to the Commission on the basis of its interstate
and international end-user revenues. As Teletronics
acknowledges, it has not paid any regulatory fees.66 We
therefore find that it has apparently violated sections 1.1154
and 1.1157(b)(1) of the Commission's rules by willfully and
repeatedly failing to pay required regulatory fees, including one
such failure in the last year which is the subject of this NAL.
G. Proposed Forfeiture
27. Section 503(b)(1)(B) of the Act provides that any
person that willfully or repeatedly fails to comply with any
provision of the Act or any rule, regulation, or order issued by
the Commission, shall be liable to the United States for a
forfeiture penalty.67 For the apparent violations in this case,
section 503(b)(2)(B) of the Act authorizes the Commission to
assess a forfeiture of up to $120,000 for each violation or each
day of a continuing violation, up to a statutory maximum of $1.2
million for a single act or failure to act for violations
occurring before September 7, 2004, and up to $130,000 for each
violation or each day of a continuing violation, up to a
statutory maximum of $1.325 million for a single act or failure
to act for violations occurring on or after September 7, 2004.68
In determining the appropriate forfeiture amount, we consider the
factors enumerated in section 503(b)(2)(D) of the Act, including
``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.''69
28. Under section 503(b)(6) of the Act, we may only
propose forfeitures for apparent violations that accrued within
one year of the date of this NAL.70 Nevertheless, section 503
does not bar us from assessing whether Teletronics' conduct prior
to that time period apparently violated the Act or our rules in
determining the appropriate forfeiture amount for those
violations within the statute of limitations.71 Therefore,
although we find that Teletronics apparently violated the Act and
our rules in multiple years, we propose forfeitures here only for
violations that occurred within the last year.
29. In contrast to previous cases in which we have taken
enforcement action for failure to satisfy universal service
obligations,72 this case involves a carrier that has never
registered and submitted any periodic Telecommunications
Reporting Worksheets from the time it commenced providing
telecommunications service until the present, in this case a
period of over five years. These failures have continued
notwithstanding the Bureau's multiple notifications to
Teletronics and Teletronics' own acknowledgement of its
obligations and omissions. Thus, we find Teletronics' failure to
register to be particularly egregious. As we stated above,
registration is fundamental to the implementation of our central
repository of carriers and to the administration of multiple
statutorily-derived programs ¾ the Universal Service Fund, the
Telecommunications Relay Service Fund, North American Numbering
Plan Administration cost recovery mechanisms, and the regulatory
fee program. Where, as here, a carrier ignores its obligations
by wholly failing to register, it undermines the programs and
thwarts the purposes for which Congress and the Commission
established them.
30. The Commission's Forfeiture Policy Statement and
implementing rules prescribe a base forfeiture of $3,000 for
failure to file required forms or information.73 In the past, we
have held that a substantial upward adjustment to $50,000 is
warranted for a carrier's failure to file its Telecommunications
Reporting Worksheets for revenue reporting purposes.74 We find
that failure to register is an even more egregious violation. By
ignoring its registration obligation, Teletronics not only has
violated our rules with significant ramifications for federal
telecommunications policies, but has also hampered efficient and
effective Commission enforcement by delaying detection of, and
action against, its behavior. Moreover, carriers' failure to
register imposes a substantial burden on the Commission, which
can only identify such carriers through compliance review
programs that require significant amounts of staff time and
resources. This egregious behavior strikes at the core of our
ability to implement and enforce the Act and our rules
effectively, thus warranting a substantial forfeiture. Taking
into account all of the factors enumerated in section
503(b)(2)(D) of the Act, we conclude that a proposed forfeiture
of $100,000 for willful and repeated failure to register is
warranted.
31. We find that Teletronics' willful and repeated failure
to file periodic Telecommunications Reporting Worksheets is also
egregious. As we noted above, a carrier's obligation to file
these Worksheets is directly linked to, and thus has serious
implications for, administration of the USF, TRS, NANPA and
regulatory fee programs. By ignoring its reporting obligations,
Teletronics has unilaterally shifted to compliant carriers and
their customers the economic costs associated with the universal
service, TRS and NANPA programs, despite the fact that it has
enjoyed many of the benefits derived from them. As noted above,
in the past, the Commission has proposed a forfeiture of $50,000
for failure to file quarterly and annual Worksheets.75
Accordingly, we find that Teletronics is apparently liable for a
$250,000 forfeiture for its failure to file its annual and four
quarterly Worksheets within the past year.
32. Based on the facts above, it also appears that
Teletronics has failed to make any requisite contributions into
the Universal Service Fund since 1999. Nonpayment of universal
service contributions is an egregious offense that bestows on
delinquent carriers an unfair competitive advantage by shifting
to compliant carriers the economic costs and burdens associated
with universal service. A carrier's failure to make required
universal service contributions hampers realization of Congress'
policy objective in section 254(d) of the Act to ensure the
equitable and non-discriminatory distribution of universal
service costs among all telecommunications providers.76 The
Commission has established a base forfeiture amount of $20,000
for each month in which a carrier has failed to make any required
universal service contributions.77 Teletronics has admitted that
it has not made any contributions to USF. Consequently, we find
that Teletronics is apparently liable for a base forfeiture of
$240,000 for its failure to make any universal service
contributions within the past 12 months. That base amount is,
however, subject to an upward adjustment.
33. In the past, we have calculated upward adjustments to
forfeitures for failure to make USF and TRS payments based on a
percentage of the company's unpaid contributions.78 In
situations such as this one, however, where the subject company
has failed to file any information, we cannot determine the full
amount owed to the funds until and unless the subject company
provides complete and accurate information to the fund
administrators. Thus, our ability to calculate and assess
accurately an upward adjustment based on a percentage of unpaid
contribution amounts can be inhibited by the violator. In such
circumstances, companies that comply with our registration and
filing requirements might be worse off than those, like
Teletronics, that appear to ignore them. Such a result is not
only unfair, but is bad public policy. During the course of our
investigation, however, we received some revenue information that
we will use to estimate the amount Teletronics should have paid
in USF contributions since it began operations (approximately
$135,000) for purposes of calculating an upward adjustment of
about half of that amount. Therefore, we propose an upward
adjustment of $68,000 for Teletronics' apparent nonpayment
violations, taking into account all the factors enumerated in
section 503(b)(2)(D) of the Act, and particularly Teletronics'
telecommunications service revenue and ability to pay. We thus
find Teletronics liable for a total proposed forfeiture of
$308,000 for its apparent willful and repeated failure to make
contributions into the Universal Service Fund.
34. We also find that Teletronics has apparently failed to
make any TRS contributions since 1999. Where a carrier fails to
satisfy its TRS obligations for an extended period of time, it
thwarts the purpose for which Congress established section
225(b)(1) of the Act and its implementing regulations ¾ to
ensure that 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.''79 The Commission has established a base forfeiture
amount of $10,000 for each instance in which a carrier fails to
make required TRS contributions.80 In light of Teletronics'
failure to satisfy any TRS obligations since 1999, including the
one for 2004, we find it apparently liable for a forfeiture in
the amount of $10,000. For the reasons discussed above regarding
Teletronics' failure to make universal service contributions, and
consistent with past Commission precedent,81 we find that an
upward adjustment in an amount approximately one half of the
carrier's estimated unpaid contributions (approximately $8,000)
is appropriate for Teletronics' apparent failure to make TRS
contributions. Taking into account the factors enumerated in
section 503(b)(2)(D) of the Act, we conclude that a $4,000 upward
adjustment is reasonable. Consequently, we find Teletronics
liable for a total proposed forfeiture of $14,000 for its willful
and repeated failure to satisfy its TRS obligations for 2004.
35. We further conclude that Teletronics apparently failed
to make any contributions toward NANPA cost recovery mechanisms
on the basis of its actual end-user telecommunications revenues
since 1999. As with universal service and TRS, the failure of
carriers to make required NANPA contributions for an extended
period of time severely hampers the Commission's ability to
ensure that the cost of establishing telecommunications numbering
administration arrangements are ``borne by all telecommunications
carriers on a competitively neutral basis'' as Congress
envisioned.82 The Commission has not prescribed a base
forfeiture amount for failure to pay NANPA contributions. We
find that this violation is similar to the failure to pay
required TRS contributions, which are relatively smaller than
universal service contributions. Consequently, we find that
Teletronics is apparently liable for a forfeiture of $10,000.
36. Finally, we conclude that Teletronics has apparently
failed to make any regulatory fee payments to the Commission on
the basis of its actual interstate and international end-user
telecommunications revenues since 1999. A carrier's failure to
contribute toward the costs of certain regulatory activities from
which it benefits undermines the efficiency, equitability, and
effectiveness of the regulatory fee program and accomplishment of
Congress' objectives in section 9(a)(1) of the Act. The
Commission has not established a base forfeiture amount for
failure to pay regulatory fees. Regulatory fee obligations,
however, are similar to TRS contributions in that they are due
annually and are assessed at similar rates.83 For this reason,
we find that a base forfeiture in the amount of $10,000 for
failure to make required regulatory fee payments is appropriate.
We, therefore, find Teletronics apparently liable for a $10,000
forfeiture for its apparent violation of sections 1.1154 and
1.1157 of the Commission's rules.
IV. CONCLUSION
37. In light of the seriousness, duration and scope of the
apparent violations, and to ensure that a company with
substantial revenues such as Teletronics does not consider the
proposed forfeiture merely ``an affordable cost of doing
business,''84 we find that a proposed forfeiture in the amount of
$692,000 is warranted. As discussed, this proposed forfeiture
amount includes: (1) a total penalty of $100,000 for Teletronics'
apparent failure to register with the Commission as required by
the Commission's rules; (2) a total penalty of $250,000 for
Teletronics' apparent failure to file five Telecommunications
Reporting Worksheets within the last year as required by the
Commission's rules; (3) a total penalty of $308,000 for
Teletronics' apparent failure to make required universal service
contributions for 12 months within the last year on the basis of
its end-user telecommunications revenues; (4) a total penalty of
$14,000 for Teletronics' apparent failure to make TRS
contributions within the last year on the basis of its interstate
end-user telecommunications revenues; (5) a total penalty of
$10,000 for Teletronics' apparent failure to make NANPA
contributions within the last year on the basis of its end-user
telecommunications revenues; and (6) a total penalty of $10,000
for Teletronics' apparent failure to make regulatory fee payments
within the last year on the basis of its interstate and
international end-user telecommunications revenues.
38. We caution that additional violations of the Act or
the Commission's rules could subject Teletronics to further
enforcement action. Such action could take the form of higher
monetary forfeitures and/or possible revocation of Teletronics'
operating authority, including disqualification of Teletronics'
principals from the provision of any interstate common carrier
services without the prior consent of the Commission.85 In
addition, we note that, to the extent Teletronics is found to be
delinquent on any debt owed to the Commission (e.g., has failed
to pay all of its USF contributions), the Commission will not act
on, and may dismiss, any application or request for authorization
filed by Teletronics, in accordance with the agency's ``red
light'' rules.86 We order Teletronics to submit within thirty
days, either as part of its response to this NAL or separately, a
report, supported by a sworn statement or declaration under
penalty of perjury of a corporate officer, stating its plan to
come into compliance with the relevant payment and reporting
rules discussed herein. We further order Teletronics to file
with USAC within thirty days all Annual Telecommunications
Reporting Worksheets required under the Commission's rules from
the date it began providing telecommunications service in the
United States to the date of this NAL.
V. ORDERING CLAUSES
39. ACCORDINGLY, IT IS ORDERED THAT, pursuant to section
503(b) of the Communications Act of 1934, as amended,87 and
section 1.80 of the Commission's rules,88 that Teletronics, Inc.
is hereby NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in
the amount of $692,000 for willfully and repeatedly violating the
Act and the Commission's rules.
40. IT IS FURTHER ORDERED THAT, pursuant to section 1.80
of the Commission's Rules,89 within thirty days of the release
date of this NOTICE OF APPARENT LIABILITY, Teletronics, Inc.
SHALL PAY the full amount of the proposed forfeiture or SHALL
FILE a written statement seeking reduction or cancellation of the
proposed forfeiture.
41. IT IS FURTHER ORDERED THAT, pursuant to sections 4(i),
9(a)(1), 219(b), 254(d), 225(b)(1), and 251(e)(2) of the Act, 47
U.S.C. §§ 4(i), 159(a)(1), 219(b), 254(d), 225(b)(1), 251(e)(2),
and sections 54.706(a), 64.604(c)(5)(iii), 52.17, 54.711(a),
64.1195(a), 1.1154, and 1.1157(b)(1) of the Commission's rules,
47 C.F.R. §§ 54.706(a), 64.604(c)(5)(iii), 52.17, 54.711(a),
64.1195(a), 1.1154, and 1.1157(b)(1), within thirty days of the
release of this NOTICE OF APPARENT LIABILITY AND ORDER,
Teletronics, Inc. SHALL SUBMIT a report, supported by a sworn
statement or declaration under penalty of perjury by a corporate
officer, stating its plan promptly to come into compliance with
the payment and reporting rules discussed herein. Teletronics,
Inc. also SHALL SUBMIT to the Universal Service Administrative
Company within thirty days all Annual Telecommunications
Reporting Worksheets required under the Commission's rules from
the date Teletronics, Inc. began providing telecommunications
service in the United States to the date of this NAL.
42. 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 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.
43. The response, if any, to this NOTICE OF APPARENT
LIABILITY must be mailed to William H. Davenport, Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Washington,
D.C. 20554 and must include the NAL/Acct. No. referenced above.
44. 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 (GAAP); 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.
45. Requests for payment of the full amount of this NAL
under an installment plan should be sent to Chief, Credit and
Management Center, 445 12th Street, S.W., Washington, D.C.
20554.90
46. IT IS FURTHER ORDERED that a copy of this NOTICE OF
APPARENT LIABILITY AND ORDER shall be sent by certified mail,
return receipt requested, to Gale Kenney, Chief Executive
Officer, Teletronics, Inc., 1200 Valley Belt Road, Cleveland,
Ohio 44131, and David A. Ferris, Counsel for Teletronics, Inc.,
Ferris and Neuman, L.L.P., 2733 West Dublin-Granville Road,
Columbus, Ohio 43235.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
_________________________
1 47 C.F.R. §§ 64.1195(a).
2 47 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii)(B), 52.17(b).
3 47 U.S.C. §§ 254(d), 251(e)(2).
4 47 C.F.R. §§ 54.706(a), 64.604(c)(5)(iii)(A), 52.17(a).
5 47 C.F.R. §§ 1.1154, 1.1157(b)(1).
6 The Commission has appointed USAC as the administrator of
federal universal service support mechanisms and has made it
responsible for billing and collection. 47 C.F.R. §§ 54.701(a),
54.702(b).
7 See www.teletronics-inc.com.
8 See Letter from David A. Ferris, Counsel for Teletronics,
Inc., Ferris and Neuman, L.L.P, to Gerald H. Chakerian, Attorney,
Investigations and Hearings Division, Enforcement Bureau, FCC,
dated November 24, 2004. Because this letter did not specify the
exact dates in 1999 that Teletronics began interstate and
international services, the applicability of regulatory
provisions that became effective during that year has not yet
been fully determined.
9 See, e.g., 47 U.S.C. § 151.
10 See Implementation of the Subscriber Carrier Selection
Provisions of the Telecommunications Act of 1996, 15 FCC Rcd
15996, 16024 (2000) (``Carrier Selection Order'').
11 See 47 U.S.C. §§ 9(a),(b); 225(d)(3); 251(e)(2); 254(d). In
1999, to streamline the administration of the programs and to
ease the burden on regulatees, the Commission consolidated the
information filing requirements for multiple telecommunications
regulatory programs into the annual Telecommunications Reporting
Worksheet. See 1998 Biennial Regulatory Review, Report and
Order, 14 FCC Rcd 16602 (1999). The next year the Commission
revised the Telecommunications Reporting Worksheet slightly to
collect the additional information necessary to achieve its goal
of establishing a central repository for interstate
telecommunications providers by the least provider-burdensome
method. Carrier Selection Order, 15 FCC Rcd at 16026.
12The Telecommunications Act of 1996 amended the Communications
Act of 1934. See Telecommunications Act of 1996, Pub. L. No.
104-104, 110 Stat. 56 (1996) (``1996 Act'').
1347 U.S.C. § 254(d).
1447 C.F.R. § 54.706(b). Beginning April 1, 2003, carrier
contributions were based on a carrier's projected, rather than
historical, revenues. Id.
1547 U.S.C. § 225(b)(1).
16See Telecommunications Relay Services and the Americans with
Disabilities Act of 1990, Third Report and Order, 8 FCC Rcd 5300,
5301, ¶ 7 (1993) (``TRS III Order''). Telecommunications relay
services enable persons with hearing and speech disabilities to
communicate by telephone with persons who may or may not have
such disabilities. Such services provide telephone access to a
significant number of Americans who, without it, might not be
able to make or receive calls from others. See
Telecommunications Relay Services and Speech-to-Speech Services
for Individuals with Hearing and Speech Disabilities, Report and
Order, 15 FCC Rcd 5140, 5143, ¶ 5 (2000). NECA currently is
responsible for administering the TRS Fund.
1747 C.F.R. § 64.604(c)(5)(iii)(A).
1847 U.S.C. § 251(e)(1).
1947 U.S.C. § 251(e)(2).
2047 C.F.R. § 52.17(a).
21Section 9(a)(1) of the Act directs the Commission to ``assess
and collect regulatory fees to recover the costs of the following
regulatory activities of the Commission: enforcement activities,
policy and rulemaking activities, user information services, and
international activities.'' 47 U.S.C. § 159(a)(1); see also 47
C.F.R. § 1.1151.
22See 47 C.F.R. §§ 1.1154, 1.1157(b)(1).
2347 C.F.R. § 1.1157(b)(1). Section 1.1154 of the Commission's
rules sets forth the schedule of annual regulatory charges and
filing locations for common carrier services. See 47 C.F.R. §
1.1154.
24See 47 U.S.C. §§ 159(c)(1), (c)(3).
25 47 C.F.R. § 1.1910. The rule went into effect on November
1, 2004. See ``FCC Announces Brief Delay in Enforcement of Red
Light Rule,'' Public Notice, 19 FCC Rcd 19452 (2004).
26 Individual universal service contribution amounts that are
based upon quarterly filings are subject to an annual true-up.
See Federal-State Joint Board on Universal Service, Petition for
Reconsideration filed by AT&T, Report and Order and Order on
Reconsideration, 16 FCC Rcd 5748 (2001) (``Quarterly Reporting
Order''); 47 C.F.R. § 54.709(a).
27 See Globcom, Inc., Notice of Apparent Liability for
Forfeiture and Order, 18 FCC Rcd 19893, 19896 (2003)
(``Globcom''); 47 C.F.R. § 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 Third Quarter
2003 Contribution Factor,'' Public Notice, 18 FCC Rcd 11442
(2003) (``Contribution payments are due on the date shown on the
[USAC] invoice.'') The Act and our rules, however, do not
condition payment on receipt of an invoice or other notice from
USAC. See 47 U.S.C. § 254(d); 47 C.F.R. § 54.706(b). A carrier
that does not file may fail to receive an invoice from USAC, but
is nonetheless required to contribute to the universal service
fund, unless its revenues are considered de minimus. The
instructions for the Telecommunications Reporting Worksheet
include tables for carriers to determine their annual
contributions.
28 47 C.F.R. § 54.713.
29 See 47 C.F.R. §§ 52.17(b), 64.604(c); Assessment and
Collection of Regulatory Fees for Fiscal Year 2004, 19 FCC Rcd
11662, 11675, 11717 (2004).
30 See 47 C.F.R. § 64.1195(a).
31 See Letter from Hugh L. Boyle, Chief Auditor, Investigations
and Hearings Division, Enforcement Bureau, FCC, to Teletronics,
Inc., dated March 30, 2004 (requesting confirmation that
Teletronics had filed registration information pursuant to
section 64.1195(a) of the Commission's rules) (``March 30 Audit
Letter''); Letter from Hugh L. Boyle, Chief Auditor,
Investigations and Hearings Division, Enforcement Bureau, FCC, to
Teletronics, Inc., dated June 18, 2004 (again requesting
confirmation that Teletronics had filed registration information
pursuant to section 64.1195(a) of the Commission's rules) (``June
18 Audit Letter'').
32 See Letter from David A. Ferris, Counsel for Teletronics,
Inc., Ferris and Neuman, L.L.P., to Andrew Skadin, Auditor,
Investigations and Hearings Division, Enforcement Bureau, FCC,
dated July 12, 2004 (``Teletronics July 12 Letter''). The
Teletronics July 12 Letter references, (1) the March 30 Audit
Letter, (2) Teletronics' e-mail responses thereto on May 12 and
18, 2004 (copies of which are attached), and (3) the June 18
Audit Letter.
33 See Letter from Hillary DeNigro, Deputy Chief,
Investigations and Hearings Division, Enforcement Bureau, FCC, to
Gale Kenney, Chief Executive Officer, Teletronics, Inc., dated
October 28, 2004 (``LOI'').
34 See Letter from David A. Ferris, Counsel for Teletronics,
Inc., Ferris and Neuman, L.L.P, to Gerald H. Chakerian, Attorney,
Investigations and Hearings Division, Enforcement Bureau, FCC,
dated November 24, 2004 (``Teletronics November 24 Letter'');
Letter from David A. Ferris, Counsel for Teletronics, Inc.,
Ferris and Neuman, L.L.P., to Gerald H. Chakerian, Attorney,
Investigations and Hearings Division, Enforcement Bureau, FCC,
dated January 3, 2005 (``Teletronics January 3 Letter'').
35 See Teletronics November 24 Letter, Responses to Inquiries
Nos. 4, 7-13.
3647 U.S.C. § 503(b)(1)(B); 47 C.F.R. § 1.80(a)(1). Section
312(f)(1) of the Act defines willful as ``the conscious and
deliberate commission or omission of [any] act, irrespective of
any intent to violate'' the law. 47 U.S.C. § 312(f)(1). The
legislative history to section 312(f)(1) of the Act clarifies
that this definition of willful applies to both sections 312 and
503(b) of the Act, H.R. Rep. No. 97-765, 97th Cong. 2d Sess. 51
(1982), and the Commission has so interpreted the term in the
section 503(b) context. See, e.g., Application for Review of
Southern California Broadcasting Co., Memorandum Opinion and
Order, 6 FCC Rcd 4387, 4388 (1991) (``Southern California
Broadcasting Co.''). The Commission may also assess a forfeiture
for violations that are merely repeated, and not willful. See,
e.g., Callais Cablevision, Inc., Grand Isle, Louisiana, Notice of
Apparent Liability for Monetary Forfeiture, 16 FCC Rcd 1359
(2001) (issuing a Notice of Apparent Liability for, inter alia, a
cable television operator's repeated signal leakage).
``Repeated'' means that the act was committed or omitted more
than once, or lasts more than one day. Callais Cablevision,
Inc., 16 FCC Rcd at 1362, ¶ 9; Southern California Broadcasting
Co., 6 FCC Rcd at 4388, ¶ 5.
3747 U.S.C. § 503(b); 47 C.F.R. § 1.80(f).
38See, e.g., SBC Communications, Inc., Forfeiture Order, 17 FCC
Rcd 7589, 7591, ¶ 4 (2002) (forfeiture paid).
39 47 U.S.C. §§ 254(d), 251(e)(2).
4047 C.F.R. §§ 64.1195(a), 54.711(a), 64.604(c)(5)(iii), 52.17,
54.706(a), 1.1154, 1.1157(b)(1).
41 47 U.S.C. §§ 254(d), 251(e)(2).
4247 C.F.R. §§ 64.1195(a), 54.711(a), 64.604(c)(5)(iii), 52.17,
54.706(a), 1.1154, 1.1157(b)(1).
43 47 C.F.R. § 64.1195(a); Carrier Selection Order, 15 FCC Rcd
15996, 16025 (requiring existing carriers to register on the date
the new registration requirement becomes effective by means of
certain information in a Form 499-A); 66 FR 17083 (2001)
(announcing that the OMB approved information collection
requirement in section 64.1195 of our rules would take effect on
April 2, 2001).
44 Id. The Commission adopted the registration requirement in
section 64.1195(a) after finding that such a requirement would
enable it to better monitor the entry of carriers into the
interstate telecommunications market and any associated increases
in slamming activity, and, among other things, would enhance the
Commission's ability to take appropriate enforcement action
against carriers that have demonstrated a pattern or practice of
slamming. See Carrier Selection Order,15 FC Rcd at 16024 ¶ 62.
45 Teletronics' compliance with the registration requirement
that became effective April 2, 2001 would have alerted program
administrators that it had operated without participation in any
of the programs since it began providing interstate service in
1999.
46 47 C.F.R. § 1.1910.
47 See 47 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii)(B), 52.17(b);
64 Fed. Reg. 41320-01 (Jul. 30, 1999).
48 Id.
49 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 Universal Service Fund, 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 Fund. This percentage is called the
contribution factor. The contribution factor, and, consequently,
the amount owed to the Fund by each affected telecommunications
company, changes each quarter, depending on the needs of the
Universal Service Fund and carrier-provided revenue projections.
See www.fcc.gov/wcb/universal_service/quarter. Thus, in cases
where a carrier, such as Teletronics, 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 to the Fund falls disproportionately on carriers
that have satisfied their reporting obligations.
5047 U.S.C. § 254(d).
5147 U.S.C. § 254(d); 47 C.F.R. § 54.706(c).
5247 C.F.R. § 54.706(c).
53See 47 C.F.R. § 54.706(a)(16).
54See 47 C.F.R. § 54.706(c).
55 Teletronics November 24 Letter, Response to Inquiry No. 9.
56Globcom, 18 FCC Rcd at 19903 ¶ 26.
5747 C.F.R. § 64.604(c)(5)(iii)(A).
58Id. Each subject carrier must contribute at least $25 per
year. Carriers whose annual contributions are less than $1,200
must pay the entire amount at the beginning of the contribution
period. 47 C.F.R. § 64.604(c)(5)(iii)(B). Otherwise, carriers
may divide their contributions into equal monthly payments. Id
59Id.
60 Id..
61 Teletronics November 24 Letter, Response to Inquiry No. 10.
6247 U.S.C. § 251(e)(2); 47 C.F.R. § 52.17(a).
63Id. § 52.17(a). In particular, contributions to support
numbering administration are based upon a carrier's end-user
telecommunications revenues for the prior calendar year and a
contribution factor determined annually by the Chief of the
Wireline Competition Bureau, but in no event will be less than
$25. Id. NANPA contributions are due on an annual basis, with
certain exceptions.
64 Teletronics November 24 Letter, Response to Inquiry No. 11.
6547 C.F.R. §§ 1.1154, 1.1157. Payments of standard regulatory
fees applicable to common carrier services must be filed in full
on an annual basis. Id. § 1.1157(b)(1).
66 Teletronics November 24 Letter, Response to Inquiry No. 13.
6747 U.S.C. § 503(b)(1)(B); see also 47 C.F.R. § 1.80(a)(2).
6847 U.S.C. § 503(b)(2)(B); see also 47 C.F.R. § 1.80(b)(2).
6947 U.S.C. § 503(b)(2)(D); see also Forfeiture Policy
Statement, 12 FCC Rcd at 17100, ¶ 27; 47 C.F.R. § 1.80(b).
7047 U.S.C. § 503(b)(6)(B); see also 47 C.F.R. § 1.80(c)(3).
71See 47 C.F.R. § 1.80(b)(4).
72Cf., Globcom , 18 FCC Rcd 19893 (2003); America's Tele-Network
Corp., Notice of Apparent Liability for Forfeiture, 15 FCC Rcd
20903 (2000); Matrix Telecom, Inc., Notice of Apparent Liability
for Forfeiture, 15 FCC Rcd 13544 (2000); ConQuest Operator
Services Corp., Order of Forfeiture, 14 FCC Rcd 12518 (1999)
(each carrier had registered and filed Telecommunications
Reporting Worksheets prior to the Commission's inquiry and, in
some cases, had paid contributions in part).
73See 47 C.F.R. § 1.80(b)(4).
74In the Globcom NAL, the Commission proposed a $50,000
forfeiture for each instance within the statute of limitations
that Globcom failed to file a required Worksheet. Globcom, 18
FCC Rcd at 19905, ¶ 32. We note, however, that, unlike
Teletronics, Globcom had registered with the Commission and
submitted multiple Worksheets prior to our investigation.
75 See id.
76 See 47 U.S.C. § 254(d).
77See Globcom, 18 FCC Rcd at 19903-19904, ¶¶ 25-27.
78 See, e.g., id. 18 FCC Rcd at 19904.
79 47 U.S.C. § 225(b)(1).
80 See Globcom, 18 FCC Rcd at 19904, ¶ 29.
81 Id.
82 47 U.S.C. § 251(e)(2).
83For example, the 2004 TRS Fund contribution factor was .00356
per dollar of interstate and international end-user revenue and
the 2004 interstate telecommunications regulatory fee assessment
was .00218 per dollar of interstate and international end-user
revenue. See Telecommunications Relay Services and Speech-to-
Speech Services for Individuals with Hearing and Speech
Disabilities, 19 FCC Rcd 12224, 12225 (2004); Assessment and
Collection of Regulatory Fees for Fiscal Year 2004, 19 FCC Rcd at
11691.
84Forfeiture Policy Statement, 12 FCC Rcd at 17099; see also 47
C.F.R. § 1.80(b)(4).
85 See Business Options, Inc., Consent Decree, 19 FCC Rcd 2916
(2003); NOS Communications, Inc., Affinity Network Incorporated
and NOSVA Limited Partnership, Consent Decree, 2003 WL 22439710
(2003).
86 47 C.F.R. § 1.1910.
87 47 U.S.C. § 503(b).
88 47 C.F.R. § 1.80,
89 See 47 C.F.R. § 1.80(f)(3).
90See 47 C.F.R. § 1.1914.