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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of ) File No. EB-04-IH-0469
)
MCI, Inc. ) Account No. 200532080120
)
Compliance with Rules Regarding ) FRN No. 0010856284
Thousands-Block Number Pooling )
)
ORDER
Adopted: February 2, 2005 Released:
February 3, 2005
By the Chief, Enforcement Bureau:
1. In this Order, we adopt a Consent Decree terminating an
investigation into possible violations by MCI, Inc.
(``MCI'') of sections 52.15 and 52.20(c) of the Commission's
rules,1 with respect to thousands-block number pooling in
certain rate centers.2
2. The Enforcement Bureau (``Bureau'') and MCI have
negotiated the terms of a Consent Decree that would
terminate the Bureau's investigation. A copy of the Consent
Decree is attached hereto and incorporated by reference.
3. We have reviewed the terms of the Consent Decree and
evaluated the facts before us. We believe that the public
interest would be served by approving the Consent Decree and
terminating the investigation.
4. Accordingly, IT IS ORDERED, pursuant to section 4(i) of
the Communications Act of 1934, as amended, 47 U.S.C.
§ 154(i), and the authority delegated by section 0.111 and
0.311 of the Commission's rules, 47 C.F.R. §§ 0.111, 0.311,
that the attached Consent Decree IS ADOPTED.
5. IT IS FURTHER ORDERED that the above captioned
investigation IS TERMINATED.
FEDERAL COMMUNICATIONS COMMISSION
David H. Solomon
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of ) File No. EB-04-IH-0469
)
MCI, Inc. ) Account No. 200532080120
)
Compliance with Rules Regarding ) FRN No. 0010856284
Thousands-Block Number Pooling )
CONSENT DECREE
I. INTRODUCTION
1. The Enforcement Bureau (``Bureau'') of the Federal
Communications Commission (the ``FCC'' or the
``Commission'') and MCI, Inc. (``MCI''), by their
authorized representatives, hereby enter into this
Consent Decree to resolve an investigation (the
``Investigation'') by the Bureau regarding alleged
violation by MCI of Sections 52.15 and 52.20(c) of the
Commission's rules,3 with respect to thousands-block
number pooling in certain rate centers. The
Investigation was undertaken pursuant to sections 4(i),
4(j), 218, and 403 of the Communications Act.4
II. DEFINITIONS
2. For the Purposes of this Consent Decree, the following
definitions shall apply:
(a) ``Adopting Order'' means an Order of the Bureau
adopting the terms and conditions of this Consent Decree
without change, addition or modification.
(b) ``MCI'' or the ``Company'' means MCI, Inc. and any
affiliate, d/b/a, predecessor-in-interest, parent companies
and any direct or indirect subsidiaries of such parent
companies, or other affiliated companies or businesses, and
their successors and assigns.
(c) ``Bureau'' means the Enforcement Bureau of the Federal
Communications Commission.
(d) ``Communications Act'' or ``Act'' means the
Communications Act of 1934, as amended, 47 U.S.C. § 151 et
seq.
(e) ``Effective Date'' means the date on which the Bureau
releases the Adopting Order.
(f) The ``FCC'' or the ``Commission'' means the Federal
Communications Commission.
(g) ``Investigation'' means the investigation commenced by
the Bureau's Letter of Inquiry dated September 29, 2004,
regarding MCI's alleged noncompliance with Sections 52.15
and 52.20(c) of the Commission's rules.
(h) ``Parties'' means MCI and the Bureau.
III. BACKGROUND
3. On September 29, 2004, the Enforcement Bureau issued a
Letter of Inquiry (``LOI'') to MCI and initiated an
investigation concerning MCI's compliance with thousands-
block number pooling regulations, and requested that MCI
provide certain documents and other information with
respect to 71 specifically identified rate centers.5 MCI
submitted its initial response to the LOI on October 27,
2004, and filed supplements to that response on November
9, 2004 and December 9, 2004.6
4. Section 52.20(b) of the Commission's rules provides that
all carriers, except those exempted by the Commission,
must participate in thousands-block number pooling where
the Commission implements such a system, and in
accordance with a Commission-established framework and
schedule.7 Section 52.15 of the Commission's rules
provides, inter alia, that in areas where thousands-block
numbering pooling has been implemented,
telecommunications carriers that are required to
participate must submit to the North American Numbering
Plan Administrator (``NANPA'') semi-annual forecasts of
their yearly numbering resource requirements at the
thousands-block level for each rate center.8
5. MCI states that it submitted a Numbering Resource
Utilization and Forecast (``NRUF'') Report, FCC Form 502,
at the thousands-block level to the NANPA for the
reporting periods ending December 31, 2003 and June 30,
2004 for each rate center in which MCI has numbering
resources. MCI also states that the thousands-block
forecast data was subsequently entered into the Pooling
Administration System (``PAS'') and thereby submitted to
the Pooling Administrator (``PA'').9
6. Section 52.20(c)(1) of the Commission's rules requires
all service providers that are required to participate in
thousands-block number pooling to donate thousands-blocks
with ten percent or less contamination to the thousands-
block number pool for the rate center within which the
numbering resources are assigned.10 Notwithstanding the
contamination level of the block, the Commission allows
service providers to retain at least one thousands-block
per rate center as an initial or footprint block, as well
as enough thousands-blocks to meet their six-month
projection forecasts for the rate center.11 The
Commission otherwise allows service providers to maintain
an inventory of telephone numbers to meet their needs for
six months.12 Section 52.15(g)(3)(iii) of the
Commission's rules requires service providers to maintain
no more than a six-month inventory of telephone numbers
in each rate center or service area in which they provide
telecommunications service.13
7. MCI states that, following the commencement of
Commission-mandated number pooling in 2001, it conducted
an inventory of its numbers to determine its initial six-
month numbering inventory requirements for each NPA
entering the pool. MCI further states that it has
subsequently continued to review its inventory
requirements and between January and August 2004 donated
or returned approximately 56 thousands-blocks of numbers
to the rate center within which the numbering resources
are assigned.14 Additionally, after receiving the
September 29 LOI, MCI conducted an additional audit and
returned or donated an additional 656 thousands-blocks of
numbers for the 71 rate centers identified in the
September 29 LOI.15 In response to the Bureau's
investigation of its practices, MCI has confirmed its
willingness to review and revise its inventory management
methods for all its rate centers.
IV. AGREEMENT
8. MCI agrees that the Commission and its delegated
authority, the Bureau, have jurisdiction over it and the
matters contained in this Consent Decree and the
authority to enter into and adopt this Consent Decree.
9. MCI represents and warrants that it is the properly named
party to this Consent Decree and is solvent and has
sufficient funds available to meet fully all financial
and other obligations set forth herein. MCI further
represents and warrants that it has caused this Consent
Decree to be executed by its authorized representative,
as a true act and deed, as of the date affixed next to
said representative's signature. Said representative and
MCI respectively affirm and warrant that said
representative is acting in his/her capacity and within
his/her authority as a corporate officer of MCI, and on
behalf of MCI and that by his/her signature said
representative is binding MCI to the terms and conditions
of this Consent Decree.
10. The Parties agree that this Consent Decree does not
constitute either an adjudication on the merits or a
factual or legal finding regarding any compliance or
noncompliance with the requirements of the Act and the
Commission's orders and rules. The Parties agree that
this Consent Decree is for settlement purposes only and
that by agreeing to this Consent Decree, MCI does not
admit or deny any wrongdoing, non-compliance, or
violation of the Act or the Commission rules in
connection with the matters that are the subject of this
Consent Decree.
11. In consideration for the termination of the Investigation
in accordance with the terms of this Consent Decree, MCI
shall make a voluntary payment to the United States
Treasury, without further protest or recourse to a trial
de novo, in the amount of one hundred thousand dollars
($100,000.00) within ten (10) business days after the
Effective Date of the Adopting Order. The payment may be
made by check or similar instrument, payable to the order
of the Federal Communications Commission. The payment
must include the Acct. No. and FRN No. referenced in the
Adopting Order. Payment by check or money order must be
mailed to Forfeiture Collection Section, Finance Branch,
Federal Communications Commission, P.O. Box 73482,
Chicago, IL, 60673-7482. Payment by overnight mail must
be sent to Bank One/LB 73482, 525 West Monroe, 8th Floor
Mailroom, Chicago, IL 60661. Payment by wire transfer
must be made to ABA Number 071000013, receiving bank Bank
One, and account number 1165259.
12. In order to resolve and terminate the Investigation, and
to ensure compliance with the Commission's thousands-
block number pooling rules, MCI shall implement the
actions described below, i.e., a Compliance Plan:
(a) Forecasts & Reports.
MCI will file telephone numbering forecasts and reports in
compliance with the Industry Numbering Committee's
``Thousands-Block Number (NXX-X) Pooling Administration
Guidelines'' (and any amendments thereto or replacement
thereof).
(b) Initial Audit of Remaining Potential Donations of
Thousands-Blocks
1. Initial Audit. A number pooling audit team
(``Audit Team'') will review all thousands-blocks in
all the remaining 1,445 rate centers in addition to
those 71 rate centers identified in the September 29
LOI. The Audit Team will review MCI's six-month
inventory requirements and identify all thousands-
blocks that are potentially subject to donation or
return pursuant to applicable Commission regulations.
2. Audit Review Process. MCI's Number Resource
Management Support Team, a group that supports both
MCI's Numbering and Service Delivery Support Division
and its Number Administration Division by verifying and
auditing numbering data, will conduct a second review
of all of the potentially donatable blocks the Audit
Team has identified to verify that each block
identified does not exceed applicable federal and state
contamination thresholds.
3. Confirmation and Referral Process. Upon
completion of the Number Resource Management Support
Team's audit review described in 12(b)(2) above, the
Audit Team will confer with the Number Resource
Management Support Team to confirm the eligibility of
the identified blocks. The Audit Team will then make
an appropriate referral of eligible blocks to the Code
Administration Team to donate and/or return the
thousands blocks to the Pooling Administrator.
4. Donation and Return. MCI's Code Administration
Team will make all appropriate donations and returns to
the Pooling Administrator on a rolling basis, as such
eligible blocks are identified.
5. Supervision and Tracking. MCI shall designate a
Project Manager in MCI's Numbering and Service Delivery
Support Division to supervise directly the activities
described in this paragraph. The Project Manager will
track the progress of the various teams described above
and will provide a weekly report of the percent of
completion and identify any issues that MCI's senior
management may need to address. Each week a Manager in
MCI's Numbering Administration Division, a subdivision
of MCI's Numbering and Service Delivery Support
Division that has primary responsibility for acquiring,
monitoring, and managing MCI's numbering resources,
will review and report the status of the audit to a
Senior Manager in MCI's Numbering and Service Delivery
Support Division.
6. Deadline. The review and donation process
described above shall be completed on or before June
30, 2005 (the entire period from the Effective Date
until July 1, 2005 constituting the ``Donation
Period''). With no less than 30 days notice prior to
June 30, 2005, MCI may seek, and the Bureau will
consider, an additional 30-day extension of time for
good cause shown.
(c) Audits of Potential Donations of Thousands-Blocks Going
Forward
MCI will perform number resource audits consistent with the
process detailed above, as appropriate. At the conclusion
of each audit, MCI will donate or return eligible blocks in
excess of its forecasted six-month capacity, following,
where appropriate, the preparation and filing of MCI's NRUF
reports and the Pooling Block Forecasts submitted to the
Pooling Administrator via the PAS.
(d) Compliance Training Program.
MCI's staff involved in performing number resources
administrative duties has received additional training
concerning these duties since the September 29 LOI. MCI
shall establish a thousands-block number pooling compliance
training program for employees new to thousands-block number
pooling activities. MCI shall conduct training sessions for
any new employee involved with number pooling within 30 days
of the employee's assignment to number pooling activities.
MCI shall conduct training sessions for all effected
employees at least annually to ensure compliance with the
Act and FCC policies and rules.
(e) Compliance Manual.
MCI shall within sixty days of the Effective Date develop
and update as necessary a Compliance Manual on thousands-
block number pooling. MCI personnel shall have ready access
to the Compliance Manual and must follow the procedures
contained in it. The manual shall, among other things,
describe the North American Numbering Plan and Thousands-
Block Number Pooling Administration Guidelines and how they
apply to MCI.
(f) Termination.
Except as otherwise stated, the requirements of paragraph 12
shall expire twenty-four months from the Effective Date.
13. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement of the
Investigation. In express reliance on the covenants and
representations contained herein, and in order to avoid
the potential expenditure of additional public resources,
the Bureau agrees to terminate the Investigation. In
consideration for the termination of this Investigation,
MCI agrees to the terms, conditions, and procedures
contained herein. The Bureau agrees that, in the absence
of new material evidence related to this matter, it will
not use the facts developed in the Investigation or the
existence of the Consent Decree, to initiate, on its own
motion, any new proceedings, formal or informal, or take
any actions on its own motion against MCI concerning the
matters that were the subject of this Investigation. In
addition, the Bureau will not, on its own motion, seek
any administrative or other penalties from MCI concerning
MCI's compliance with the Commission's orders and
regulations regarding reporting, forecasting, return, and
donation of numbers for MCI's activities, including any
potential violations of such orders and regulations,
during or prior to the Donation Period plus any
applicable extension, as long as MCI complies with the
requirements set forth in subparagraphs 12(a), 12(b) and
12(c) above. Nothing in this paragraph shall limit the
Commission's authority to enforce this Consent Decree in
accordance with its terms, nor shall anything in this
Consent Decree limit the Commission's authority to
consider and adjudicate any formal complaint that may be
filed pursuant to section 208 of the Act, 47 U.S.C.
Section 208, and to take any action in response to such
complaint.
14. Except as provided herein, nothing in this Consent Decree
shall alter MCI's obligation to comply with the Act and
with the Commission's rules and orders.
15. MCI waives any and all rights it may have to seek
administrative or judicial reconsideration, review,
appeal, or stay, or to otherwise challenge or contest the
validity of this Consent Decree and the Order adopting
this Consent Decree, provided the Order adopts the
Consent Decree without change, addition, or modification.
16. MCI's decision to enter into this Consent Decree is
expressly contingent upon the Bureau's issuance of an
Adopting Order.
17. 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.
18. The Parties also agree that if any provision of this
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 MCI does not consent) that provision will
be superseded by such Commission rule or order.
19. By this Consent Decree, MCI does not waive or alter its
right to assert and seek protection from disclosure of
any privileged or otherwise confidential and protected
documents and information, or to seek appropriate
safeguards of confidentiality for any competitively
sensitive or proprietary information. The status of
materials prepared for, reviews made and discussions held
in the preparation for and implementation of MCI's
compliance efforts under this Consent Decree, which would
otherwise be privileged or confidential, are not altered
by the execution or implementation of the terms of this
Consent Decree, and no waiver of such privileges is made
by this Consent Decree. Nothing in this Consent Decree
shall be deemed to prejudice MCI's rights to seek
exemption from disclosure pursuant to the Freedom of
Information Act and the Commission's implementing
regulations for documents provided by MCI to the
Commission, or for MCI to contest any request for
disclosure of agency records relating to the subject of
this Consent Decree.
20. 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 MCI nor the Commission
shall contest the validity of the Consent Decree or the
Adopting Order, and MCI and the Commission will waive any
statutory right to a trial de novo with respect to the
issuance of the Adopting Order and shall consent to a
judgment incorporating the terms of this Consent Decree.
21. MCI agrees that any violation of the Consent Decree or
the Adopting Order will constitute a separate violation
of a Commission order, entitling the Commission, or its
delegated authority, to exercise any rights or remedies
attendant to the enforcement of a Commission order.
22. This Consent Decree may be signed in counterparts.
For: MCI, Inc.
_____________________________ __________________________
Date Fred Briggs
President of Operations and
Technology
MCI, Inc.
For: Enforcement Bureau
Federal Communications Commission
______________________________
__________________________
Date David H. Solomon
Chief, Enforcement Bureau
_________________________
1 47 C.F.R. §§ 52.15, 52.20(c).
2 Letter dated September 29, 2004 from Hillary S. DeNigro, Deputy
Chief, Investigations and Hearings Division, Enforcement Bureau,
FCC, to Michael Cappellas, MCI (``September 29 LOI).
3 47 C.F.R. §§ 52.15, 52.20(c).
4 47 U.S.C. §§ 154(i), 154(j), 218 and 403.
5 See Letter dated September 29, 2004 from Hillary S. DeNigro,
Deputy Chief, Investigations and Hearings Division, Enforcement
Bureau, FCC, to Michael Cappellas, MCI (``September 29 LOI'').
6 See Letter dated October 27, 2004 from Allison M. Ellis,
Associate Litigation Counsel, MCI, Inc. to Mika Savir, Attorney,
Investigations and Hearings Division, Enforcement Bureau, FCC
(``MCI Response''); Letter dated November 9, 2004 from Allison M.
Ellis, Associate Litigation Counsel, MCI, Inc. to Mika Savir,
Attorney, Investigations and Hearings Division, Enforcement
Bureau, FCC (``MCI First Supplement''); Letter dated December 9,
2004 from Allison M. Ellis, Director, Compliance, MCI, Inc. to
Diana Lee, Attorney, Investigations and Hearings Division,
Enforcement Bureau, FCC (``MCI Second Supplement'').
7 47 C.F.R. § 52.20(b).
8 47 C.F.R. § 52.15.
9 See MCI Response at 1-2. MCI states that, based on its
understanding of appropriate practices, in submitting its
thousands-number block forecasts electronically to the PA using
the Pooling Administration System (``PAS''), in most cases MCI
left any automatically-displayed zero in place for those rate
centers in a Numbering Plan Area (``NPA'') in which it did not
expect to need numbers instead of manually re-entering a zero
itself. MCI First Supplement at 1. MCI states that the PA
apparently interpreted this process as a failure to submit a
report for those rate centers. Id. at 2. MCI states that it is
now re-submitting forecasts with manually entered zeros for each
of the relevant 71 rate centers for which no increase in demand
was anticipated. Id. at 2.
10 47 C.F.R. § 52.20(c)(1). In the 310 and 909 area codes in
California, the contamination level is twenty-five percent or
less. See Numbering Resources Optimization, Petition of the
California Public Utilities Commission for Waiver of the Federal
Communications Commission Contamination Threshold Rule, Order, 18
FCC Rcd 16860 (2003).
11 47 C.F.R. §52.20(c)(2); Numbering Resource Optimization,
Report and Order and Further Notice of Proposed Rulemaking, 15
FCC Rcd 7574, 7661-61 ¶ 191 (2000) (``NRO Order'').
12 47 C.F.R. § 52.20(c)(2); NRO Order, 15 FCC Rcd at 7660 ¶ 189.
13 47 C.F.R. § 52.15(g)(3)(iii).
14 See MCI Response at 3-4 and Exhibits A and D.
15 See MCI Second Supplement at 1.