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




In the Matter of                 )
                                )
Arbros Communications, Inc.      )
                                )    File No. EB-02-TC-038
                                )
Apparent Liability for           )    NAL/Acct. No. 200332170001
Forfeiture                       )    FRN: 0003793205
                                )
                                )


                        FORFEITURE ORDER

   Adopted: February 9, 2004            Released: February 10, 
2004

By the Chief, Enforcement Bureau:

I.   INTRODUCTION

               1.   In  this  Forfeiture  Order  (``Order''),  we 
issue a  monetary  forfeiture in  the  amount of  fifty  thousand 
dollars   ($50,000)   against    Arbros   Communications,    Inc. 
(``Arbros'') for violating section  214(a) of the  Communications 
Act of 1934, as amended (the ``Act'')1 and sections 63.61, 63.71, 
and 63.505  of  the  Commission's  rules2  by  discontinuing  its 
domestic  interstate  access  service  in  California,  Delaware, 
Maryland, Massachusetts,  New  Jersey,  New  York,  Pennsylvania, 
Virginia, and Washington, D.C., as well as all of its  interstate 
long distance service,  before receiving authorization  to do  so 
from the Commission. 

II.       BACKGROUND

               2.      The  facts and  circumstances  surrounding 
this case  are set  forth  in the  Notice of  Apparent  Liability 
previously issued by  the Bureau  and need not  be reiterated  at 
length.3  In  the  fall  of  2001, Arbros  decided  to  exit  its 
telecommunications  resale   business,  informed   its   upstream 
providers of its intent to do so, and did not pay amounts  billed 
by these providers.4  At least  one of these providers  therefore 
discontinued service to Arbros.5  Arbros filed an application for 
discontinuance with the Commission on March 1, 2002, stating that 
between February 12 and February 14, 2002, it had sent notices to 
its customers of its intent to terminate service on March 4.   In 
response to complaints  from consumers who  received the  notice, 
Arbros filed  a supplemental  application with  a revised  notice 
stating that Arbros intended to discontinue service on March  16, 
2002,6 and in fact did terminate service during the third week of 
March,   2002,    without   Commission    authorization.     This 
discontinuance occurred too early to permit automatic  Commission 
authorization in 31 days as  provided under Section 63.71 of  the 
Commission's regulations.7  As a result, long distance service to 
some customers  was cut  off prematurely  and they  were  injured 
thereby.8

              3.       On  March 6, 2003, we  issued a Notice  of 
Apparent Liability  (``NAL'') for  Forfeiture  in the  amount  of 
fifty thousand dollars  ($50,000).9  Arbros filed  a response  on 
April 15, 2003, enclosing financial  documents in support of  its 
claim that  it  was  unable to  pay  the  proposed  forfeiture.10  
Arbros did not  make any  arguments regarding the  merits of  the 
matters discussed in the NAL, other than to say that it stood  by 
its  prior  responses  to   Bureau  inquiries.  Because   Arbros' 
financial data was incomplete, and publicly available information 
raised  questions   about   Arbros'  financial   condition,   the 
Enforcement Bureau sent letters to Arbros on July 15 and  October 
2, 2003, requesting additional information in support of Arbros's 
claim that  it  was  unable  to  pay  the  forfeiture.11   Arbros 
responded that it  had not prepared  the requested documents  and 
that it would not likely be able to do so at this time.12

III.       DISCUSSION

       4. In its response, Arbros presents data in support of its 
claim that  it is  unable to  pay the  proposed forfeiture.   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.13  In  most  cases,  the 
Commission has looked to gross revenue as the best indicator of a 
carrier's ability to pay  a forfeiture.14  Arbros' response  does 
not  contain  sufficient  information   for  any  of  the   three 
categories described  above.   Accordingly,  we  have  considered 
other  sources  of   information  concerning  Arbros'   financial 
condition.  

     5.   During  our   investigation,   we   reviewed   publicly 
available information showing that, shortly after it discontinued 
service, Arbros created a holding company, Arcomm Holding Company 
(``Arcomm''), and transferred to Arcomm its subsidiary companies, 
including    companies    that     provided    local     exchange 
telecommunications services  in a  number of  relevant  states.15 
Based on  this information  and  the limited  information  Arbros 
submitted concerning its  assets, it appears  that Arcomm or  its 
subsidiaries may now hold  substantial assets previously held  by 
Arbros.    Because   the   information   Arbros   submitted   was 
insufficient to determine the extent of Arbros's control over  or 
access to  these assets  or to  other assets  previously held  by 
Arbros, we  sought more  information from  Arbros, including  the 
2002 tax returns  of Arbros and  Arcomm.16  Arbros, however,  did 
not provide the documents or information we requested.  In  light 
of Arbros's failure to provide adequate information to justify  a 
reduced forfeiture, and significant questions concerning Arbros's 
access to  assets  held  by  related  entities  or  other  assets 
previously  controlled  by  Arbros,  we  decline  to  reduce  the 
proposed  forfeiture  amount.   We  conclude  that  the  proposed 
forfeiture, $50,000, is reasonable based  on all the evidence  in 
the record, including the  most recent gross revenue  information 
Arbros submitted.17  
      
IV.  ORDERING CLAUSES

             6.     ACCORDINGLY, IT IS ORDERED THAT, pursuant  to 
Section 503(b) of the Communications  Act of 1934, as  amended,18 
Section 1.80(f)(4)  of the  Commission's rules,19  and  authority 
delegated  by  Sections  0.111  and  0.311  of  the  Commission's 
rules,20 Arbros  Communications, Inc.  IS LIABLE  FOR A  MONETARY 
FORFEITURE in the amount of fifty thousand dollars ($50,000)  for 
willfully or  repeatedly violating  Section 214  of the  Act  and 
Sections 63.61, 63.71,  and 63.505 of  the Commission's rules  by 
discontinuing  its   domestic   interstate  access   service   in 
California, Delaware,  Maryland, Massachusetts,  New Jersey,  New 
York, Pennsylvania, Virginia,  and Washington, D.C.,  as well  as 
all of  its interstate  long distance  service, before  receiving 
authorization to do so from the Commission.

              7.    Payment of the  forfeiture shall  be made  in 
the manner provided for  in Section 1.80 of  the Rules within  30 
days of the release of this Order.  If the forfeiture is not paid 
within the  period specified,  the case  may be  referred to  the 
Department of Justice for  collection pursuant to Section  504(a) 
of the Act.21  Payment may be made by mailing a check or  similar 
instrument, payable to the order of the ``Federal  Communications 
Commission,'' to the Federal Communications Commission, P.O.  Box 
73482, Chicago,  Illinois 60673-7482.   The payment  should  note 
NAL/Acct. No. 200332170001.  Requests for full payment under  the 
installment  plan  should   be  sent  to:   Chief,  Revenue   and 
Receivables  Group,  445  12th  Street,  S.W.,  Washington,  D.C. 
20554.22

                                8. IT IS FURTHER  ORDERED that  a 
copy of  this  Order shall  be  sent by  Certified  Mail,  Return 
Receipt Requested  to Lawrence  Li,  P.O. Box  0059,  Beltsville, 
Maryland 20704-0059.

                    FEDERAL COMMUNICATIONS COMMISSION



                    David H. Solomon
                                                                 
Chief, Enforcement Bureau



_________________________

1 47 U.S.C.  214(a).
2 47 C.F.R.  63.61, 63.71, 63.505.
3 Arbros Communications, Inc.,  Notice of Apparent Liability  for 
Forfeiture, 18 FCC Rcd 3251 (2003) (``NAL'').
4 Letter from E. Ashton Johnston, counsel for Arbros, to Peter G. 
Wolfe, FCC (Sept. 5, 2002).
5 Letters from upstream providers to Peter G. Wolfe, FCC (Aug.  7 
and 20, 2002).
6  Comments  Invited  on  Arbros  Communications,  Inc.  and  its 
Subsidiaries   Joint   Application   to   Discontinue    Domestic 
Telecommunications Services, Public Notice, DA 02-571 (rel.  Mar. 
7, 2002).
7 47 C.F.R.  63.71.
8 Declaration of Karl Fischer  on behalf of Traffic Planning  and 
Design (Sept. 4, 2002); Declaration  of Charles Tassin on  behalf 
of Career Transition Center (Aug.  29, 2002); Declaration of  Jim 
Smith  on  behalf  of  Conard-Pyles  Company  (Aug.  28,   2002); 
Declaration of Don  Schindhelm on behalf  of Applied  Information 
Technologies (Sept.  4,  2002);  Declaration of  Rob  Edwards  on 
behalf of Royall & Company (Aug. 27, 2002).
9 Arbros Communications, Inc.,  Notice of Apparent Liability  for 
Forfeiture, 18 FCC Rcd 3251 (2003).
10 Response to Notice of Apparent Liability for Forfeiture  (Apr. 
15,  2003).   Arbros  requested  confidential  treatment  of  its 
response.  Although we are not ruling at this time on whether the 
information meets the requirements for confidential treatment, we 
will nonetheless treat such information confidentially.
11 Letter  of  Colleen  K.  Heitkamp,  Chief,  Telecommunications 
Consumers Division,  Enforcement  Bureau, FCC,  to  Lawrence  Li, 
Arbros (July 15,  2003); Letter  of Colleen  K. Heitkamp,  Chief, 
Telecommunications Consumers Division,  Enforcement Bureau,  FCC, 
to Lawrence Li, Arbros (Oct. 2, 2003).
12 Response  to  Notice  of Apparent  Liability  for  Forfeiture, 
Request for Additional Information-Dated 7/15/03 (Aug. 28, 2003); 
Letter from  Lawrence Li,  Arbros,  to FCC,  Enforcement  Bureau, 
Telecommunications Consumers' Division (Oct. 9, 2003).
13 See, e.g., Callais Cablevision, Inc. Grand Isle, Louisiana, 16 
FCC Rcd 1359 (2001).
14 See Vista  Group International,  Inc., 16 FCC  Rcd 8289,  8295 
(2001); PJB Communications  of Virginia,  Inc., 7  FCC Rcd  2088, 
2089 (1992)  (``PJB'');  David  L.  Hollingsworth  d/b/a  Worland 
Services,  7  FCC   Rcd  6640,  6641   (Com.  Car.  Bur.,   1992) 
(``Worland''). 
15 Notification  of Transfer  of Control-  Comm South  Companies, 
Inc. and Arbros Communications,  Inc. to Arcomm Holding  Company, 
Tennessee Regulatory Authority Docket  No. 02-01200, October  30, 
2002.
16 Letter  of  Colleen  K.  Heitkamp,  Chief,  Telecommunications 
Consumers Division,  Enforcement  Bureau, FCC,  to  Lawrence  Li, 
Arbros (July 15,  2003); Letter  of Colleen  K. Heitkamp,  Chief, 
Telecommunications Consumers Division,  Enforcement Bureau,  FCC, 
to Lawrence Li, Arbros (Oct. 2, 2003).
17 The $50,000 amount is within the range of percentage of  gross 
revenues that the Commission has found reasonable in other cases.  
See PJB, 7 FCC Rcd  at 2089 (1992); Worland,  7 FCC Rcd  at  6641 
(1992). 
18 47 U.S.C.  503(b).
19 47 U.S.C.  1.80(f)(4).
20 47 C.F.R.  0.111, 0.311.
21 47 U.S.C.  504(a).
22 See 47 C.F.R.  1.1914.