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

                              )       File No. EB-04-IH-0519
In the Matter of               )
                              )       Acct. No. 200632080001
Locus Telecommunications, Inc. )
                              )       FRN No. 0010-7295-15

                              ORDER

Adopted: September 30,  2005                              
Released: October 3, 2005  

By the Chief, Enforcement Bureau: 

     1.        In this Order, we adopt the attached Consent 
Decree entered into between the Enforcement Bureau and Locus 
Telecommunications, Inc. (``Locus'').  The Consent Decree 
terminates the enforcement proceeding initiated by the 
Enforcement Bureau against Locus for possible violations of the 
universal service reporting and contribution requirements of 
section 254 of the Communications Act of 1934, as amended (``the 
Act'')1 and certain Commission rules relating to universal 
service, the Telecommunications Relay Service Fund and the North 
American Numbering Plan Administration, sections 52.17, 54.706, 
54.711, 54.713, and 64.604 of the Commission's rules.2 

     2.        The Enforcement Bureau and Locus have negotiated 
the terms of a Consent Decree that would resolve this matter.  A 
copy of the Consent Decree is attached hereto and incorporated by 
reference.  

     3.        Based on the record before us, and in the absence 
of material new evidence relating to this matter, we conclude 
that are no substantial or material questions of fact as to 
whether Locus possesses the basic qualifications, including those 
related to character, to hold or obtain any Commission license or 
authorization.    

     4.        After reviewing the terms of the Consent Decree, 
we find that the public interest will be served by adopting the 
Consent Decree. 

     5.        Accordingly, IT IS ORDERED that, pursuant to 
section 4(i) of the Communications Act of 1934, as amended,3 and 
sections 0.111 and 0.311 of the commission's rules,4 the Consent 
Decree attached to this Order IS ADOPTED.


     6.        IT IS FURTHER ORDERED that the above-captioned 
investigation IS TERMINATED.


                              FEDERAL COMMUNICATIONS COMMISSION
                         

                         
                              Kris Anne Monteith
                              Chief, Enforcement Bureau                           Before the
                Federal Communications Commission
                      Washington, DC 20554


                              )       File No. EB-04-IH-0519
In the Matter of               )
                              )       Acct. No. 200532080146
Locus Telecommunications, Inc. )
                              )       FRN No. 0010-7295-15

                         CONSENT DECREE

     1.   The Enforcement Bureau (``Bureau'') of the Federal 
Communications Commission (``Commission'') and Locus 
Telecommunications, Inc. (``Locus'') hereby enter into this 
Consent Decree for the purpose of terminating the Bureau's 
investigation into whether Locus violated the universal service 
reporting and contribution requirements of section 254 of the 
Communications Act of 1934, as amended (the ``Act'')5 and/or 
certain Commission rules relating to universal service, the 
Telecommunications Relay Service Fund and the North American 
Numbering Plan Administration.

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

     (a)  ``Commission'' and ``FCC'' mean the Federal 
        Communications Commission.

     (b)  ``Bureau'' means the Enforcement Bureau of the Federal 
        Communications Commission.

     (c)  ``Locus'' means Locus Telecommunications, Inc. and its 
        predecessors-in-interest and successors-in-interest.

     (d)  ``Parties'' means Locus and the Bureau.

     (e)  ``Order'' or ``Adopting Order'' means an Order of the 
        Commission or the Bureau adopting the terms of this 
        Consent Decree without change, addition, deletion, or 
        modification.

     (f)  ``Effective Date'' means the date on which the 
        Commission or the Bureau releases the Adopting Order.

     (g)  ``Investigation'' means the investigation commenced by 
        the Bureau's October 28, 2004 Letter of Inquiry6 
        regarding whether Locus violated the requirements of 
        section 254 of the Act and/or sections 1.1157, 52.17, 
        54.706, 54.711, 54.713, 64.604 and 64.1195 of the 
        Commission's rules relating to carrier registration, 
        universal service reporting and contribution, number 
        administration, telecommunications relay systems and 
        regulatory fee payment.  



I.   BACKGROUND

     3.   Pursuant to section 254(d) of the Act and sections 
52.17, 54.706, 54.711, 54.713, and 64.604 of the Commission's 
rules, telecommunications carriers that provide interstate 
telecommunications services and private service providers that 
provide interstate telecommunications are required to file annual 
and quarterly Telecommunications Reporting Worksheets (FCC Forms 
499-A and 499-Q) and contribute to the Universal Service Fund, 
Telecommunications Relay Service Fund and North American 
Numbering Plan Administration.7

     4.   Locus is a provider of prepaid calling services.  On 
October 28, 2004, the Bureau initiated the Investigation by 
issuing a Letter of Inquiry (``LOI'') directing Locus to provide 
information about its compliance with, among other matters, the 
Commission's universal service reporting and contribution 
requirements.  Locus submitted a response to the Bureau's LOI on 
December 1, 2004.8  On July 15, 2005, Locus submitted 
supplemental information in response to the Bureau's request.9  

II.  AGREEMENT

     5.   The Parties agree that the provisions of this Consent 
Decree shall be subject to final approval by the Bureau, through 
entry of the Order, which shall immediately resolve and terminate 
the Investigation.

     6.   The Parties agree that this Consent Decree does not 
constitute either an adjudication on the merits or a factual or 
legal finding or determination regarding any compliance or 
noncompliance with the requirements of the Act or the 
Commission's rules and orders.  The Parties agree that this 
Consent Decree is for settlement purposes only and that by 
agreeing to this Consent Decree, Locus does not admit or deny 
liability for violating any statute, regulation, or 
administrative rule in connection with matters that are the 
subject of this Consent Decree.  

     7.   Locus agrees that it will make a voluntary contribution 
to the United States Treasury in the amount of $330,000, in three 
equal installments of $110,000 each paid over a three month 
period, with the first payment due 30 days after the Effective 
Date and each of the two successive payments due 30 days after 
the previous payment.  The payment must be made by check or 
similar instrument, payable to the order of the Federal 
Communications Commission.  The payment must include ``Acct. No. 
200532080146'' and ``FRN No. 0010-7295-15.''  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.

     8.   For purposes of settling the matters set forth herein, 
Locus agrees to maintain a compliance program related to future 
compliance with the Act, the Commission's rules, and the 
Commission's orders.  The program will include, at a minimum, the 
following components: 

     (a)  Compliance Manual. The Company shall maintain and 
        update as necessary its existing Compliance Manual.  
        Company personnel shall have ready access to the 
        Compliance Manual and are to follow the procedures 
        contained in it.  The Compliance Manual, among other 
        things, describes the universal service, 
        Telecommunications Relay Service and North American 
        Numbering Plan Administration rules and requirements as 
        they apply to Locus.  The Compliance Manual encourages 
        personnel to contact the Company's Designated Contact, 
        President, and/or Chief Financial Officer with any 
        questions or concerns that arise.  The Company shall 
        submit to the Bureau a final version of its Compliance 
        Manual 30 days after the Effective Date.  

     (b)  Compliance Training Program.  The Company will 
        establish an FCC compliance training program for 
        employees who engage in activities subject to FCC 
        regulation.  Training sessions will be conducted at least 
        annually to ensure compliance with the Act and the FCC's 
        regulations and policies and, for new employees, within 
        the first 30 days of employment.

     (c)  Designated Contact.  The Company will designate one 
        employee as the point of contact for all 
        telecommunications compliance matters.

     (d)  Review and Monitoring.  The Company will review the FCC 
        Compliance Training Program annually to ensure that it is 
        maintained in a proper manner and continues to address 
        the objectives set forth therein.

     (e)  Audits.  The Company will ensure that external and 
        internal audit reviews specifically address compliance 
        with FCC regulatory requirements.

     (f)  Termination.  Locus's obligation under this Paragraph 8 
        shall expire twenty four (24) months after the Effective 
        Date.

     9.   The Bureau agrees that it will not use the facts 
developed in this Investigation through the Effective Date of the 
Consent Decree or the existence of this Consent Decree to 
institute, on its own motion, any new proceeding, formal or 
informal, or take any action on its own motion against Locus 
concerning the matters that were the subject of the 
Investigation.  The Bureau also agrees that it will not use the 
facts developed in this Investigation through the Effective Date 
of this Consent Decree or the existence of this Consent Decree to 
institute on its own motion any proceeding, formal or informal, 
or take any action on its own motion against Locus with respect 
to Locus's basic qualifications, including its character 
qualifications, to be a Commission licensee or authorized common 
carrier.  

     10.  Nothing in this Consent Decree shall prevent the 
Commission or its delegated authority from adjudicating 
complaints filed pursuant to section 208 of the Act against Locus 
or its affiliates for alleged violations of the Act, or for any 
other type of alleged misconduct, regardless of when such 
misconduct took place.  The Commission's adjudication of any such 
complaint will be based solely on the record developed in that 
proceeding.  Except as expressly provided in this Consent Decree, 
this Consent Decree shall not prevent the Commission from 
investigating new evidence of noncompliance by Locus of the Act, 
the rules, or this Order.

     11.  Locus waives any and all rights it may have to seek 
administrative or judicial reconsideration, review, appeal or 
stay, or to otherwise challenge or contest the validity of this 
Consent Degree and the Order adopting this Consent Decree, 
provided the Bureau issues an Order adopting the Consent Decree 
without change, addition, modification, or deletion.  Locus shall 
retain the right to challenge Commission interpretation of the 
Consent Decree or any terms contained herein. 

     12.  Locus's decision to enter into this Consent Decree is 
expressly contingent upon the Bureau's issuance of an Order that 
is consistent with this Consent Decree, and which adopts the 
Consent Decree without change, addition, modification, or 
deletion.

     13.  In the event that this Consent Decree is rendered 
invalid by any court of competent jurisdiction, it shall become 
null and void and may not be used in any manner in any legal 
proceeding.

     14.  If either Party (or the United States on behalf of the 
Commission) brings a judicial action to enforce the terms of the 
Adopting Order, neither Locus nor the Commission shall contest 
the validity of the Consent Decree or the Adopting Order, and 
Locus shall waive any statutory right to a trial de novo.  

     15.  Any violation of the Consent Decree or the Adopting 
Order will constitute a separate violation of a Commission order, 
entitling the Commission to exercise any rights or remedies 
authorized by law attendant to the enforcement of a Commission 
order.

     16.  The Parties also agree that if any provision of the 
Consent Decree conflicts with any subsequent rule or order 
adopted by the Commission (except an order specifically intended 
to revise the terms of this Consent Decree to which Locus does 
not expressly consent) that provision will be superseded by such 
Commission rule or order.
     17.  Locus hereby agrees to waive any claims it may 
otherwise have under the Equal Access to Justice Act, 5 U.S.C. § 
504 and 47 C.F.R. § 1.1501 et seq., relating to the matters 
addressed in this Consent Decree.

     18.  This Consent Decree may be signed in counterparts.






________________________________
Kris Anne Monteith
Chief, Enforcement Bureau
Federal Communications 
Commission


________________________________
Date



________________________________
Jason W. Chon
President
Locus Telecommunications, Inc.


________________________________
Date


_________________________

1 47 U.S.C. § 254.

2 47 C.F.R. §§ 52.17, 54.706, 54.711, 54.713, 64.604.

3 47 U.S.C. § 154(i).

4 47 C.F.R. §§ 0.111, 0.311.

  5 47 U.S.C. § 254.

  6  See   Letter  from   Hillary  S.   DeNigro,  Deputy   Chief, 
Investigations and Hearings Division, Enforcement Bureau, FCC  to 
Jason W. Chon, President, Locus Telecommunications, Inc. (October 
28, 2004).

  7  47 U.S.C.  § 254(d);  47 C.F.R.  §§ 52.17,  54.706,  54.711, 
54.713, 64.604.

  8 See Letter  from Locus' counsel, Jonathan S. Marashlian,  The 
Helein  Law  Group,   to  Hillary  S.   DeNigro,  Deputy   Chief, 
Investigations and Hearings Division, Enforcement Bureau (Dec. 1, 
2004).

  9  See Letter  from  Jonathan  S. Marashlian,  The  Helein  Law 
Group, to Hillary  S. DeNigro, Deputy  Chief, Investigations  and 
Hearings Division, Enforcement Bureau (July 15, 2005).