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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of ) File No. EB-04-IH-0274
)
)
Carrera Communications, LP ) NAL/Acct. No. 200532080137
)
)
Apparent Liability for ) FRN No. 0010-7507-43
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 a telecommunications provider, operating
since 1999 and at least indirectly benefiting from the federal
programs supporting the telecommunications industry since that
time, apparently failed to meet its statutory and regulatory
obligations relating to those programs. Despite multiple
Commission inquiries into its compliance with our rules and the
Communications Act of 1934, as amended (the ``Act''),1 and with
the exception of a few isolated acts of post-investigative
compliance, this carrier continues a pattern of egregious non-
compliance. Based upon the facts and circumstances surrounding
this matter we conclude that this company is apparently liable
for a total forfeiture of $606,500.
2. We specifically find that Carrera Communications, LP
(``Carrera'') has apparently violated sections 54.711(a) and
64.604 of the Commission's rules by failing to submit certain
Telecommunications Reporting Worksheets (``Worksheets'') or
predecessor forms from 1999 through the current date.2 Further,
we find that Carrera has apparently violated section 254(d) of
the Act and sections 54.706(a) and 64.604(c)(5)(iii)(A) of the
Commission's rules by willfully and repeatedly failing to
contribute to the Universal Service Fund (``USF'') and
Telecommunications Relay Service (``TRS'') Fund.3 We also find
that Carrera has apparently violated sections 1.1154 and
1.1157(b)(1) of the Commission's rules by failing to pay
regulatory fees to the Commission.4 Finally, we find that
Carrera apparently violated Commission orders by willfully and
repeatedly failing to respond to Commission directives to provide
certain information.
3. We order Carrera 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 Carrera to file with
the Universal Service Administrative Company (``USAC'') within
thirty days all annual Telecommunications Reporting Worksheets
and amended Worksheets required under the Commission's rules from
the date that Carrera commenced providing telecommunications
services in the United States to the date of this NAL.5
II. BACKGROUND
4. 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.6 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.7 Commission rules require that, upon entry
or anticipated entry into interstate telecommunications markets,
telecommunications carriers register by submitting information on
an FCC Form 499-A, also known as the annual Telecommunications
Reporting Worksheet.8 The Commission also requires
telecommunications providers to submit financial information on
annual and, with some exceptions not applicable to Carrera,
quarterly short-form Worksheets to enable the Commission to
determine and collect the statutorily mandated program
assessments.9
5. The Telecommunications Act of 1996 codified Congress'
historical commitment to promote universal service to ensure that
consumers in all regions of the nation have access to affordable,
quality telecommunications services.10 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.''11 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.12
6. 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.''13 To
that end, the Commission established the TRS Fund to reimburse
TRS providers for the costs of providing interstate
telecommunications relay services.14 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 its interstate end-user
revenues.15
7. 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.16 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.17 Such
fees must be paid on an annual basis,18 and failure to do so
subjects a carrier to late payment penalties, as well as possible
revocation of its operating authority.19 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.20
8. The Commission has established specific procedures to
administer the programs for universal service, telecommunications
relay services, numbering administration and regulatory fees. A
carrier must file Worksheets for the purpose of determining its
USF, TRS, and regulatory fee program payments.21 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.22 Carriers are
required to pay their monthly USF contribution by the date shown
on their invoice.23 The Commission's rules explicitly warn
contributors that failure to file their forms or submit their
payments potentially subjects them to enforcement action.24 The
TRS Administrator and the Commission use the prior year's revenue
information provided on the annual Worksheet to determine amounts
owed for the TRS and regulatory fee programs, respectively.25
9. Carrera is a Texas-based telecommunications carrier
that has been providing telecommunications services as a
competitive local exchange carrier and interexchange carrier
since 1999.26 In 2004, the Enforcement Bureau (``Bureau'') audit
staff sought to identify resellers of telecommunications services
that failed to register as telecommunications service providers
with the Commission, and, thus, may also have failed to satisfy
various Commission program requirements.27 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, the Bureau's
audit staff sent a letter to Carrera requesting information
pertaining to Carrera's compliance with section 64.1195 of the
Commission's rules.28 Thereafter, Carrera registered and
belatedly filed on May 5, 2004, certain revenue information that
had been due April 1, 2004. Carrera then responded to the
Bureau's audit staff that it had registered and filed.29
10. After determining that Carrera appeared to have failed
to timely register with the Commission or timely file required
Telecommunications Reporting Worksheets, the Bureau issued a
letter of inquiry (``LOI'') to Carrera on July 29, 2004.30 The
LOI directed Carrera, among other things, to submit a sworn
written response to a series of questions relating to Carrera's
apparent failure to register and file Telecommunications
Reporting Worksheets and to make mandated federal
telecommunications regulatory program payments. Carrera did not
respond as required on August 18, 2004. After Bureau staff
telephoned Carrera in late August regarding its failure to
respond, Carrera requested additional time to respond to the LOI
and the Bureau granted Carrera the extension. Carrera provided
an incomplete response on September 13, 2004.31 The Bureau
issued two additional letters to Carrera, on November 5, 2004 and
on January 21, 2005, directing it to provide complete responses
to the original LOI and warning that ``[f]ailure to respond fully
to the Bureau's LOI can by itself subject Carrera to potential
enforcement action.''32 Carrera failed to respond to the
November 2004 and January 2005 LOIs in any manner. Carrera also
failed to respond to telephone and voicemail messages left by
Bureau staff regarding Carrera's continuing failure to respond.
During this same period, Carrera continued to fail to make any
universal service contribution and regulatory fee program
payments, paid its TRS Fund contribution four months late and
only after repeated collection efforts by the Administrator,
failed to file the quarterly Telecommunications Reporting
Worksheets due May 1, August 1, and November 1, 2004, and
February 1 and May 1, 2005, and failed to file the annual
Worksheet due April 1, 2005.
III. DISCUSSION
11. 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.33 To impose such a
forfeiture penalty, the Commission must issue a notice of
apparent liability 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.34 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.35 As set forth below, we conclude under this standard that
Carrera is apparently liable for forfeiture for its apparent
willful and repeated violations of section 254(d) of the Act36
and sections 54.711(a), 64.604(c)(5)(iii), 54.706(a), 1.1154, and
1.1157(b)(1) of the Commission's rules.37
12. The fundamental issues in this case are whether Carrera
apparently violated the Act and the Commission's rules by: (1)
willfully or repeatedly failing to file Telecommunications
Reporting Worksheets; (2) willfully or repeatedly failing to make
requisite contributions toward the Universal Service and TRS
Funds; (3) willfully or repeatedly failing to pay regulatory fees
to the Commission; and (4) willfully or repeatedly failing to
respond to Commission communications and comply with the
associated orders. We answer these questions affirmatively.
Based on a preponderance of the evidence, we conclude that
Carrera is apparently liable for a forfeiture of $606,500 for
apparently willfully and repeatedly violating section 254(d) of
the Act,38 sections 54.711(a), 64.604(c)(5)(iii), 54.706(a),
1.1154, and 1.1157(b)(1) of the Commission's rules,39 and
Commission orders.
13. Specifically, we propose the following forfeitures for
apparent violations within the last year: (1) $250,000 for
failure to file five Telecommunications Reporting Worksheets; (2)
$325,000 for failure to make any monthly USF contributions; (3)
$13,500 for making its 2004 TRS Fund contribution over four
months after it was due on July 26, 2004; (4) $10,000 for failure
to make its 2004 regulatory fee program payment; and (5) $8,000
for failure to respond to Commission directives. Although we
propose forfeitures only for apparent violations within the last
year, we discuss below the history of Carrera's noncompliance in
prior years as useful background and to demonstrate the scope of
Carrera's misconduct and the context of the misconduct that is
within the statute of limitations period and thus covered by this
NAL.
A. Submission of Telecommunications Reporting
Worksheets
14. We conclude that Carrera apparently has violated
sections 54.711(a) and 64.604(c)(5)(iii)(B) of the Commission's
rules by willfully and repeatedly failing to file annual and
quarterly Telecommunications Reporting Worksheets and predecessor
forms since it began providing telecommunications services in
1999 through the current date.40 Since 1999, Carrera has filed
only one Telecommunications Reporting Worksheet, the 2004 annual
form it filed late after receiving the March 30 Audit Letter.41
Within the past year alone, Carrera has failed to file the
quarterly Worksheets due August 1 and November 1, 2004 and
February 1 and May 1, 2005, and the annual form due April 1,
2005.
15. Sections 54.711(a) and 64.604(c)(5)(iii)(B) of the
Commission's rules each clearly establish a carrier's obligation
to file periodic Telecommunications Reporting Worksheets.42 A
carrier's failure to file these Worksheets as required has
serious implications for the USF, TRS, and regulatory fee
programs. As discussed 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 administrators of the Universal Service and
TRS Funds. With regard to the federal universal service program
in particular, the failure of a carrier such as Carrera to abide
by its federal filing obligation has a direct and profound
detrimental 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.43
Consequently, a carrier's failure to file required Worksheets
thwarts 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.''44 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, TRS, and
regulatory fee programs.
16. As noted above, Carrera untimely registered and late
filed the 2004 annual Telecommunications Reporting Worksheet
(reporting 2003 revenue and due April 1, 2004) on May 5, 2004,
and did so only after receiving an inquiry from the Commission.45
Since May 5, 2004, Carrera has not filed any required Worksheet,
including the 2005 annual Worksheet due April 1, 2005. Thus,
Carrera still has not submitted all the information it is
obligated to provide under our rules, including the financial
information that is needed to calculate accurately the regulatory
program payments it failed to make from 1999 through 2002 and
from 2004 to the present. Based on a preponderance of the
evidence, we find that Carrera apparently has violated section
254 of the Act46 and sections 54.711 and 64.604 of the
Commission's rules47 by willfully and repeatedly failing to file
required information with the Commission on multiple occasions
since 1999, including failure to make five filings within the
last year, the time period covered by this NAL. The NAL proposes
a forfeiture for Carrera's failure to file the Worksheets due
August 1 and November 1, 2004, and February 1, April 1, and May
1, 2005.
B. Universal Service Contributions
17. We further conclude that Carrera apparently violated
section 254(d) of the Act and section 54.706 of the Commission's
rules by willfully and repeatedly failing to contribute to
universal service support mechanisms.48 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.''49 Although Carrera has been providing interstate
telecommunications services to end-users since 1999, Carrera has
made no universal service contributions to date.50 During the
relevant period, Carrera 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.51 We reiterate that Carrera has not yet provided the
information necessary to calculate how much it owes for past
universal service contribution obligations, nor has it made any
attempt to pay these long past due obligations.52 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.53
Based on a preponderance of the evidence, we find that Carrera
apparently has violated sections 254(d) of the Act and 54.706 of
the Commission's rules by willfully and repeatedly failing to
make any of its monthly universal service contribution payments
for a period of years, including 12 such failures within the past
year.
C. Telecommunications Relay Service Contributions
18. We also find that Carrera apparently has violated
section 64.604(c)(5)(iii)(A) of the Commission's rules by failing
to make required contributions to the interstate TRS Fund.54 As
an interstate telecommunications carrier, Carrera is obligated to
contribute to the TRS Fund on the basis of its interstate and
international end-user telecommunications revenues.55 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.56 Subject carriers must
make TRS contributions on an annual basis, with certain
exceptions that are not applicable to Carrera.57
19. Carrera's first TRS payment was made only on November
29, 2004, over five years after it first began offering
interstate telecommunications services, four months after its
2004 TRS contribution became due on July 26, 2004, and eight
months after it first received a letter of inquiry from the
Commission regarding its compliance with the Commission's
rules.58 We note further that Carrera has not yet provided the
information necessary to calculate how much it owes for past TRS
contribution obligations, nor has it made any attempt to pay
these long past due obligations.59 Based on a preponderance of
the evidence, we therefore find that Carrera apparently has
violated section 64.604 of the Commission's rules by willfully
and repeatedly failing to pay its TRS contributions when due,
including its failure to make on a timely basis the payment due
in July 2004.
D. Payment of Regulatory Fees
20. We also conclude that Carrera apparently has violated
sections 1.1154 and 1.1157(b)(1) of the Commission's rules by
failing to pay required regulatory fees to the Commission.60 As
an interstate telecommunications service provider, Carrera was
required as early as 2000 to pay regulatory fees.61 Carrera
admits and Commission records corroborate that Carrera has not
made any regulatory fee program payment.62 Carrera apparently
thus has failed to make its annual regulatory fee program
payments a total of five times. For these reasons, we find that
Carrera apparently has violated section 1.1157 of the
Commission's rules by willfully and repeatedly failing to make
its statutorily mandated regulatory fee program payments,
including one such failure in the past year.
E. Failure to Respond to Commission Communications.
21. The Commission has broad authority to investigate the
entities it regulates under, inter alia, sections 4(i), 4(j),
218, and 403 of the Act.63 Section 4(i) authorizes the
Commission to ``issue such orders, not inconsistent with this
Act, as may be necessary in the execution of its functions,'' and
section 4(j) states that ``the Commission may conduct its
proceedings in such manner as will best conduce to the proper
dispatch of business and to the ends of justice.'' Section 218
of the Act authorizes the Commission to ``obtain from . . .
carriers . . . full and complete information necessary to enable
the Commission to perform the duties and carry out the objects
for which it was created.'' Section 416 of the Act requires
carriers to follow Commission orders.64
22. Carrera apparently willfully and repeatedly failed to
provide certain documents and information required by the Bureau
in order to enable the Commission to perform its enforcement
function. Specifically, Carrera failed to respond fully to the
first LOI the Bureau issued and failed to respond in any manner
to the two additional LOIs the Bureau issued. As indicated
above, on July 29, 2004, the Bureau directed Carrera to provide
certain documents and information in order to enable the
Commission to perform its enforcement function and evaluate
allegations that Carrera had violated Commission rules. Carrera
did not respond to the first LOI as required on August 18, 2004,
or request an extension of time in which to meet its obligations
under the LOI. Instead, only after Bureau staff telephoned
Carrera in late August regarding its failure to respond and
retroactively granted Carrera an extension of time in which to
respond in full to the LOI, Carrera provided an incomplete
response on September 13, 2004.65 The Bureau issued two
subsequent LOIs directing Carrera to provide a complete
response.66 Carrera failed to respond in any manner to these
LOIs or to telephone or voicemail messages made by Bureau staff
regarding Carrera's continuing failure to respond. Carrera
received the LOIs, as evidenced by return of the mail receipt to
the Bureau and confirmation of the facsimile transmission.67
Carrera's willful and repeated failures to respond to the
Bureau's LOIs constitute apparent violations of Commission
orders.68 Based on a preponderance of the evidence, we find that
Carrera apparently has willfully and repeatedly failed to respond
to the Bureau's LOIs.
F. Proposed Forfeiture
23. 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.69 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 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, 2004.70 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.''71
24. Under section 503(b)(6) of the Act, we may only propose
forfeitures for apparent violations that occurred within one year
of the date of this NAL.72 Nevertheless, section 503(b) does not
bar us from assessing whether Carrera's 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.73 Therefore,
although we find that Carrera apparently violated the Act and our
rules for over five years, we propose forfeitures here only for
violations that occurred within the last year.
25. In the past, we have held that a substantial forfeiture
of $50,000 is warranted for a carrier's failure to file a
Telecommunications Reporting Worksheet for revenue reporting
purposes.74 We find that Carrera's willful and repeated failure
to file periodic Telecommunications Reporting Worksheets is
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, and regulatory
fee programs. By ignoring its reporting obligations, Carrera has
unilaterally shifted to compliant carriers and their customers
the economic costs associated with the universal service, TRS,
and regulatory fee programs. Therefore, we find that Carrera is
apparently liable for a $250,000 forfeiture for its failure to
file five Worksheets within the last year; i.e., those due August
1 and November 1, 2004, and February 1, April 1, and May 1 2005.
26. Based on the facts above, it also appears that Carrera
has failed to make the requisite contributions into the Universal
Service Fund for a period of over five years. 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.75 The
Commission has established a base forfeiture amount of $20,000
for each month in which a carrier has failed to make required
universal service contributions.76 Consequently, we find Carrera
apparently liable for a base forfeiture of $240,000 for its
willful and repeated failure to make universal service
contributions for each of the last twelve months.
27. In the past, we have calculated upward adjustments to
forfeitures for failure to make USF and TRS payments based on
half of the company's unpaid contributions.77 In situations such
as this one, however, where the subject company has failed to
file timely and accurate 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 this
regard, Commission enforcement action can be delayed pending the
company's full revenue disclosures, or foreclosed altogether if
the statute of limitations expires during the period of delay.
In such circumstances, companies that comply with our
registration and filing requirements might be worse off than
those, like Carrera, that appear to ignore them. Such a result
is not only unfair, but is bad public policy. During the course
of the investigation, however, we did receive certain revenue
information which we have used to estimate the amount Carrera
should have paid in USF contributions since it began operations
(approximately $170,000) for purposes of calculating an upward
adjustment of about half that amount. Therefore, we propose an
upward adjustment of $85,000 for Carrera's apparent failure to
make universal service contributions, taking into account all of
the factors enumerated in section 503(b)(2)(D) of the Act. We
thus find Carrera liable for a total proposed forfeiture of
$325,000 for its apparent willful and repeated failure to make
contributions into the Universal Service Fund.
28. We also find that Carrera apparently has failed to make
any TRS contributions from 2000 until November 29, 2004. The
November 2004 contribution was for the 2004 TRS obligation billed
by the TRS administrator and due on July 26, 2004, and Carrera
made this payment only after it received multiple Bureau
inquiries into its compliance with the related rules.78 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 -- 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
29. 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 Carrera's failure to
pay timely its TRS obligation for the 2004-2005 funding period,
we find it apparently liable for a base forfeiture in the amount
of $10,000. For the reasons discussed above regarding Carrera's
failure to make universal service contributions and generally
consistent with Commission precedent,81 we find that an upward
adjustment in an amount approximately one half of the carrier's
estimated unpaid TRS contributions (approximately $7,000) is
appropriate for Carrera's 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 $3,500 upward
adjustment is reasonable. Consequently, we find Carrera liable
for a total proposed forfeiture of $13,500 for its willful and
repeated failure to satisfy its TRS obligations for the 2004-2005
funding period.
30. We also conclude that Carrera has apparently failed to
make any regulatory fee payments to the Commission since it
became obligated to do so in 2000 through the current date,
including the 2004 regulatory fee payment due August 19, 2004.82
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 Carrera apparently liable for a
$10,000 forfeiture for its apparent violation of sections 1.1154
and 1.1157 of the Commission's rules.
31. Finally, based on the facts discussed above, we also
conclude that Carrera apparently willfully and repeatedly failed
to respond to the Bureau's LOIs. Specifically with respect to
the LOI issued August 18, 2004, Carrera provided only an untimely
and partial response and with respect to the LOIs issued November
5, 2004 and January 21, 2005, Carrera never responded in any
manner, despite repeated attempts by Bureau staff to elicit
responses from Carrera.84 Section 1.80 of the Commission's rules
and the Commission's Forfeiture Policy Statement establish a base
forfeiture amount of $4,000 for failure to respond to a
Commission communication.85 However, misconduct of this type
warrants an upward adjustment because it exhibits a disregard for
the Commission's authority that cannot be tolerated, and, more
importantly, it threatens to compromise the Commission's ability
to adequately investigate violations of its rules.86 The Bureau
must act swiftly to investigate potential violations of the
Communications Act or the Commission's rules in order to take
action within the one year period specified in section 503(b)(6)
of the Act.87 Prompt and full responses to Bureau inquiry
letters are, accordingly, critical to the Commission's
enforcement function. Recently the Bureau assessed a forfeiture
of $20,000 against a company that failed to respond to a Bureau
LOI.88 In that case, the company, represented by counsel,
requested several extensions of time in which to respond to the
LOI, but then failed to provide any of the required information
or documents.89 In Carrera's case, the company is not
represented by counsel in this matter and did provide a portion
of the information and documents it was ordered to produce,
although untimely and only after Bureau efforts to obtain
Carrera's compliance. Taking into account the factors enumerated
in section 503(b)(2)(D) of the Act, we conclude that an upward
adjustment of the base forfeiture amount to $8,000 is warranted
in this case for repeatedly and willfully failing to respond to
Commission communications.
IV. CONCLUSION
32. In light of the seriousness, duration and scope of the
apparent violations, and to ensure that a company with
substantial revenues such as Carrera does not consider the
proposed forfeiture merely ``an affordable cost of doing
business,''90 we find that a proposed forfeiture in the amount of
$606,500 is warranted. As discussed above, this proposed
forfeiture amount includes: (1) a total proposed penalty of
$250,000 for failing to file five Telecommunications Reporting
Worksheets within the past year; (2) a total proposed penalty of
$325,000 for failing to make any of its monthly universal service
contributions within the past year; (3) a proposed total penalty
of $13,500 for failing to make its 2004 TRS program contribution
when due; (4) a total proposed penalty of $10,000 for failing to
make its 2004 regulatory fee program payment; and (5) a total
proposed penalty of $8,000 for failing to respond to Commission
communications.
33. We caution that additional violations of the Act or the
Commission's rules could subject Carrera to further enforcement
action. Such action could take the form of higher monetary
forfeitures and/or possible revocation of Carrera's operating
authority, including disqualification of Carrera's principals
from the provision of any interstate common carrier services
without the prior consent of the Commission.91 Further, we also
note that Carrera is subject to the Commission's ``red light
rule'' as a result of the non-payments detailed above and the
Commission will not act on, and may dismiss, any application or
request for authorization filed by Carrera in accordance with the
Commission's rules.92 We order Carrera 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 Carrera to file with
USAC within thirty days all Annual Telecommunications Reporting
Worksheets and amended Worksheets required under the Commission's
rules from the date that Carrera commenced providing
telecommunications services in the United States to the date of
this NAL.
V. ORDERING CLAUSES
34. ACCORDINGLY, IT IS ORDERED THAT, pursuant to section
503(b) of the Communications Act of 1934, as amended, 47 U.S.C. §
503(b), and section 1.80 of the Commission's rules, 47 C.F.R. §
1.80, that Carrera is hereby NOTIFIED of its APPARENT LIABILITY
FOR A FORFEITURE in the amount of $606,500 for willfully and
repeatedly violating the Act and the Commission's rules.
35. IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of
the Commission's Rules, 47 C.F.R. § 1.80, within thirty days of
the release date of this NOTICE OF APPARENT LIABILITY, Carrera
SHALL PAY the full amount of the proposed forfeiture or SHALL
FILE a written statement seeking reduction or cancellation of the
proposed forfeiture.
36. IT IS FURTHER ORDERED THAT, pursuant to sections 4(i),
9(a)(1), 219(b), 254(d), and 225(b)(1) of the Act, 47 U.S.C. §§
4(i), 159(a)(1), 219(b), 254(d), and 225(b)(1) and sections
54.706(a), 64.604(c)(5)(iii), 54.711(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), 54.711(a), 1.1154, and 1.1157(b)(1), within
thirty days of the release of this NOTICE OF APPARENT LIABILITY
AND ORDER, Carrera 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. Carrera also
SHALL SUBMIT to USAC within thirty days all Annual
Telecommunications Reporting Worksheets and amended Worksheets
required under the Commission's rules from the date that Carrera
commenced providing telecommunications services to the date of
this NAL.
37. 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.
38. 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.
39. 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.
40. 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.
20554.93
41. 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 Ms. Joann P. Bennett, General
Partner, Carrera Communications, LP, P.O. Box 90417, San Antonio,
TX , 78209.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
_________________________
147 U.S.C. § 254(d).
247 C.F.R. §§ 54.711(a), 64.604.
347 C.F.R. §§ 54.706(a), 64.604(c)(5)(iii)(A).
447 C.F.R. §§ 1.1154, 1.1157(b)(1).
5The Commission has appointed USAC as the administrator of
federal universal service support mechanisms and has made it
responsible for billing and collection of USF contributions. 47
C.F.R. §§ 54.701(a), 54.702(b).
6See, e.g., 47 U.S.C. § 151.
7See Implementation of the Subscriber Carrier Selection
Provisions of the Telecommunications Act of 1996, Third Report
and Order and Second Order on Reconsideration, 15 FCC Rcd 15996,
16024 (2000) (``Carrier Selection Order''). Existing carriers
such as Carrera were required to register on or before April 2,
2001. Id. at 15996, 16025 (requiring existing carriers to
register on the date the new registration requirement becomes
effective); 66 Fed. Reg. 17083 (Mar. 29, 2001) (announcing that
the OMB approved information collection requirement in 4 C.F.R. §
64.1195 would take effect on April 2, 2001).
847 C.F.R. § 64.1195.
9See 47 U.S.C. §§ 159(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.
10The Telecommunications Act of 1996 amended the Communications
Act of 1934. See Telecommunications Act of 1996, Pub. L. No.
104-104, 110 Stat. 56 (1996).
1147 U.S.C. § 254(d).
1247 C.F.R. § 54.706(b). Beginning April 1, 2003, carrier
contributions were based on a carrier's projected, rather than
historical, revenues. Id.
1347 U.S.C. § 225(b)(1).
14See Telecommunications Relay Services and the Americans with
Disabilities Act of 1990, Third Report and Order, 8 FCC Rcd 5300,
5301, ¶ 7 (1993). 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.
1547 C.F.R. § 64.604(c)(5)(iii)(A).
16Section 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.
17See 47 C.F.R. §§ 1.1154, 1.1157(b)(1).
1847 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.
19See 47 U.S.C. §§ 159(c)(1), (c)(3).
2047 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).
21Upon submission of a Form 499-A registration, the carrier is
issued a filer identification number by USAC. The filer
identification number is then to be included on all further
filings by the company and is used by the Commission and its
administrators to track the carrier's contributions and invoices.
22Individual 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); 47 C.F.R. § 54.709(a).
23 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 (WCB 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. See Globcom, 18
FCC Rcd at 19896, n. 22. The instructions for the
Telecommunications Reporting Worksheet include tables for
carriers to determine their annual contributions. Carrera does
not qualify for the de minimus exception.
2447 C.F.R. § 54.713.
25See 47 C.F.R. § 64.604(c); Assessment and Collection of
Regulatory Fees for Fiscal Year 2004, Report and Order, 19 FCC
Rcd 11662, 11675, 11717 (2004).
26See www.callcarrera.com.
27See 47 C.F.R. § 64.1195(a).
28See letter from Hugh Boyle, Chief Auditor, Investigations and
Hearings Division, Enforcement Bureau, to Carrera dated March 30,
2004 (``March 30 Audit Letter'').
29See electronic mail response to the March 30 Audit Letter from
Carrera dated May 7, 2004.
30Letter from Hillary S. DeNigro, Deputy Chief, Investigations
and Hearings Division, Enforcement Bureau, to Joann P. Bennett,
Carrera, dated July 29, 2004.
31Letter from Joann P. Bennett, General Partner, Carrera, to
Hillary S. DeNigro, Deputy Chief, Investigations and Hearings
Division, Enforcement Bureau, dated September 10, 2004, with
facsimile transmission date of September 13, 2004 (``Carrera
Response''). Carrera did not respond fully to LOI Inquiry
Numbers 8, 9, 10, and 12 regarding various regulatory program
payments. In addition, the affidavit Carrera supplied to support
its response did not contain a statement that it was made under
penalty of perjury, as specifically required in the LOI, and thus
failed to conform to Commission Rule 1.16, 47 C.F.R. § 1.16.
Moreover, in response to LOI Inquiry Number 5, Carrera did not
provide a specific response setting forth the required revenue
information.
32Letters from Hillary S. DeNigro, Deputy Chief, Investigations
and Hearings Division, Enforcement Bureau, to Joann P. Bennett,
Carrera, dated November 5, 2004 and January 21, 2005. Carrera's
receipt of the letters was confirmed by return of the mail
receipts to the Bureau and confirmations of the facsimile
transmissions.
3347 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.
3447 U.S.C. § 503(b); 47 C.F.R. § 1.80(f).
35See, e.g., SBC Communications, Inc., Forfeiture Order, 17 FCC
Rcd 7589, 7591, ¶ 4 (2002) (``SBC Forfeiture Order'') (forfeiture
paid).
3647 U.S.C. § 254(d).
3747 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii), 54.706(a), 1.1154,
1.1157(b)(1).
3847 U.S.C. § 254(d).
3947 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii), 54.706(a), 1.1154,
1.1157(b)(1).
4047 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii)(B).
41In response to the relevant LOI inquiry directing Carrera to
provide copies of all Telecommunications Reporting Worksheets it
has filed, Carrera provided only the annual form that it late
filed on May 5, 2004. USAC records confirm that that it is the
only Worksheet Carrera has filed to date. With certain
exceptions that do not apply to Carrera, interstate
telecommunications carriers must file quarterly, reporting
revenue information in February, May, August and November of each
year, and annually, by April 1 of each year. See Instructions
for Completing the Worksheet for Filing Contributions to
Telecommunications Relay Service, Universal Service, Number
Administration and Local Number Portability Support Mechanisms,
FCC Form 499, April 2004, at 9.
42See 47 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii)(B).
43Sixty 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 Carrera, 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.
4447 U.S.C. § 254(d).
45See March 30 Audit Letter. The Commission has repeatedly held
that post-investigation corrective measures are not sufficient to
avoid enforcement action. See AT&T Wireless Services, Inc.,
Forfeiture Order, 17 FCC Rcd 21866, 21870-71 (2002); America's
Tele-Network Corp., Order of Forfeiture, 16 FCC Rcd 22350, 22355,
¶ 15 (2001); Coleman Enters., Inc. d/b/a/ Local Long Distance,
Inc., Order of Forfeiture, 15 FCC Rcd 24385, 24388, ¶ 8 (2000).
4647 U.S.C. § 254.
4747 C.F.R. §§ 1.1157, 54.711, 64.604.
4847 U.S.C. § 254(d); 47 C.F.R. § 54.706.
4947 C.F.R. § 54.706(c).
50See Carrera Response at 3. USAC's records show further that
Carrera has not made any universal service support payments to
date.
51See 47 C.F.R. § 54.706(c).
52In response to a Commission inquiry to provide all FCC Form 499
filings, Carrera submitted only the FCC Form 499-A filed on May
5, 2004. USAC's records indicate that Carrera did not and has
not filed annual Telecommunications Reporting Worksheets for any
years prior to 2004, has not filed any quarterly forms, and has
not filed the annual Worksheet due April 1, 2005.
53Globcom, 18 FCC Rcd at 19903 ¶ 26.
5447 C.F.R. § 64.604(c)(5)(iii)(A).
55Id. 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. Id. 47 C.F.R. § 64.604(c)(5)(iii)(B). Otherwise,
carriers may divide their contributions into equal monthly
payments. Id.
5647 C.F.R. § 64.604(c)(5)(iii)(B).
57See 47 C.F.R. § 64.604(c)(5)(iii)(B).
58The TRS Administrator's records indicate that Carrera made its
2004 contribution payment on November 29, 2004; see also Carrera
Response at 3 (stating that Carrera had not made any TRS payments
as of the date of its response, September 10, 2004.)
59In response to a Commission inquiry to provide all FCC Form 499
filings, Carrera submitted the FCC Form 499-A filed on May 5,
2004. USAC's records indicate that Carrera did not and has not
filed annual Telecommunications Reporting Worksheets for this
year or any years prior to 2004.
6047 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).
61Regulatory fee program payments for interstate
telecommunications providers are calculated on prior year
revenue. See, e.g., Assessment and Collection of Regulatory Fees
for Fiscal Year 2004, 19 FCC Rcd at 11675.
62See Carrera Response at 3 (stating that Carrera has not made
payments).
6347 U.S.C. §§ 4, 218, & 403.
6447 U.S.C. § 416.
65See supra Carrera Response, note 31.
66Letters from Hillary S. DeNigro, Deputy Chief, Investigations
and Hearings Division, Enforcement Bureau, to Joann P. Bennett,
Carrera, dated November 5, 2004 and January 21, 2005.
67See supra note 32.
68See, e.g., SBC Forfeiture Order, 17 FCC Rcd at 7600, ¶ 28;
Globcom, 18 FCC Rcd at 19898, n. 36; BigZoo.com Corp., Notice of
Apparent Liability for Forfeiture and Order, 19 FCC Rcd 24437
(Enf. Bur. 2004) (``BigZoo.com Corp. ''), Order of Forfeiture, 20
FCC Rcd 3954 (Enf. Bur. 2005); American Family Association,
Licensee of Station KBMP(FM), Enterprise, Kansas, Notice of
Apparent Liability for Forfeiture, 19 FCC Rcd 14072, Forfeiture
Order, 19 FCC Rcd 22025 (Enf. Bur. 2004); World Communications
Satellite Systems, Inc., Notice of Apparent Liability for
Forfeiture, 18 FCC Rcd 18545 (Enf. Bur. 2003) (``WCSS Forfeiture
Order''); Donald W. Kaminski, Jr., Notice of Apparent Liability
for Forfeiture, 16 FCC Rcd 10707 (Enf. Bur. 2001), Forfeiture
Order, 18 FCC Rcd 26065 (Enf. Bur. 2003).
6947 U.S.C. § 503(b)(1)(B); see also 47 C.F.R. § 1.80(a)(2).
7047 U.S.C. § 503(b)(2)(B); see also 47 C.F.R. § 1.80(b)(2).
7147 U.S.C. § 503(b)(2)(D); see also Commission's Forfeiture
Policy Statement and Amendment of Section 1.80 of the Rules to
Incorporate the Forfeiture Guidelines, Report and Order, 12 FCC
Rcd 17087, 17100, ¶ 27 (1997) (``Forfeiture Policy Statement'');
recon. denied 15 FCC Rcd 303 (1999); 47 C.F.R. § 1.80(b).
7247 U.S.C. § 503(b)(6)(B); 47 C.F.R. § 1.80(c)(3). Effective
September 7, 2004, the Commission amended its rules to increase
the maximum penalties to account for inflation since the last
adjustment of the penalty rates. See Amendment of Section 1.90
of the Commission's Rules, Order, 19 FCC Rcd 10945, 10946 ¶ 6
(2004).
73See, e.g., Globcom, 18 FCC Rcd at 19903; Roadrunner Transp.,
Inc., Forfeiture Order, 15 FCC Rcd 9669, 9671 (2000); Liab. of E.
Broad. Corp., Memorandum Opinion and Order, 10 F.C.C. 2d 37
(1967).
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.
75See 47 U.S.C. § 254(d).
76See Globcom, 18 FCC Rcd at 19903-19904, ¶¶ 25-27.
77See, e.g., id.
78Carrera made its late TRS program payment only after receiving
two LOIs from the Commission specifically inquiring into its
compliance with the payment requirement and multiple collection
demands from the TRS Administrator. Commission precedent is
clear that subsequent remedial measures do not cure a violation
for enforcement purposes. See supra note 45.
7947 U.S.C. § 225(b)(1).
80See Globcom, 18 FCC Rcd at 19904, ¶ 29.
81See id.
82See ``FY 2004 Regulatory Fees Due No Later Than August 19,
2004,'' Public Notice, (rel. Jul. 2, 2004).
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, Order, 19 FCC Rcd 12224, 12225 (Con. & Gov. Aff.
Bur. 2004); Assessment and Collection of Regulatory Fees for
Fiscal Year 2004, 19 FCC Rcd at 11691.
84See supra ¶ 22.
8547 C.F.R. § 1.80; Forfeiture Policy Statement, 12 FCC Rcd at
17114.
86See, e.g., WCSS Forfeiture Order, 18 FCC Rcd at 18545
(proposing a monetary forfeiture of $10,000 against regulatee for
submitting a jurisdictional objection rather than a substantive
response to a Bureau LOI); SBC Forfeiture Order, 17 FCC Rcd at
7600, ¶ 28 (issuing a monetary forfeiture of $100,000 against SBC
for violating an order to submit a sworn statement with its
response to a Bureau LOI).
8747 U.S.C § 503(b)(6).
88BigZoo.com Corp, Order of Forfeiture, DA 05-449, (Enf. Bur.
Rel. Feb. 23, 2005).
89See BigZoo.com Corp., 19 FCC Rcd at 24437-38.
90Forfeiture Policy Statement, 12 FCC Rcd at 17099; see also 47
C.F.R. § 1.80(b)(4).
91See 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).
9247 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).
93See 47 C.F.R. § 1.1914.