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Before the
Federal Communications Commission
Washington, D.C. 20554
) File No. EB-04-IH-0652
In the Matter of )
) Acct. No. 200632080006
United Networks International, )
Inc. ) FRN No. 0011-1796-03
ORDER
Adopted: December 8, 2005
Released: December 9, 2005
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent
Decree entered into between the Enforcement Bureau and United
Networks International, Inc. (``UNI''). The Consent Decree
terminates the enforcement proceeding initiated by the
Enforcement Bureau against UNI for possible violations of section
254 of the Communications Act of 1934, as amended (``the Act''),1
relating to universal service, and sections 1.1157, 52.17,
54.706, 54.711, 64.604, and 64.1195 of the Commission rules
relating to universal service, the Telecommunications Relay
Service Fund, the North American Numbering Plan Administration,
and regulatory fees.2
2. The Enforcement Bureau and UNI have negotiated the
terms of a Consent Decree that resolves 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 UNI 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-0652
In the Matter of )
) Acct. No. 200632080006
United Networks International, )
Inc. ) FRN No. 0011-1796-03
CONSENT DECREE
1. The Enforcement Bureau (``Bureau'') of the Federal
Communications Commission (``Commission'') and United Networks
International, Inc. (``UNI'' or the ``Company'') hereby enter
into this Consent Decree for the purpose of terminating the
Bureau's investigation into whether UNI violated section 254 of
the Communications Act of 1934, as amended (the ``Act''),5
relating to universal service, and/or certain Commission rules
relating to universal service, the Telecommunications Relay
Service (``TRS'') Fund, the North American Numbering Plan
Administration (``NANPA''), and regulatory fees.
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) ``UNI'' means United Networks International, Inc. and
its predecessors-in-interest and successors-in-interest.
(d) ``Parties'' means UNI 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 January 26, 2005 Letter of Inquiry6
regarding whether UNI violated the requirements of
section 254 of the Act and/or sections 1.1157, 52.17,
54.706, 54.711, 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 payments.
I. BACKGROUND
3. Pursuant to section 64.1195(a) of the Commission's
rules, all carriers that provide interstate telecommunications
service must register with the Commission through submission of
FCC Form 499-A.7 In addition, pursuant to section 254(d) of the
Act and sections 54.706(a) and 54.711(a) of the Commission's
rules, telecommunications carriers that provide interstate
telecommunications services and private service providers that
provide interstate telecommunications services are required to
file annual and quarterly Telecommunications Reporting Worksheets
(FCC Forms 499-A and 499-Q) and contribute to the Universal
Service Fund.8
4. Section 225(b)(1) of the Act9 codifies Title IV of the
Americans with Disabilities Act of 1990. In support of that Act,
section 64.604 of the Commission's rules requires every carrier
that provides interstate telecommunications services to file
Telecommunications Reporting Worksheets and contribute to the TRS
Fund based upon its interstate and international end-user
revenues.10
5. Section 251(e)(1) of the Act directs the Commission to
ensure the availability of telephone numbers on an equitable
basis.11 To this end, section 52.17 of the Commission's rules
requires that all telecommunications carriers file
Telecommunications Reporting Worksheets and contribute toward the
costs of numbering administration on the basis of their end-user
telecommunications revenues for the prior calendar year.12
6. Pursuant to section 9(a)(1) of the Act and section
1.1151 of the Commission's rules, interstate telecommunications
and other providers must pay regulatory fees to the Commission to
recover the costs of certain regulatory activities.13 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.14
7. UNI is a provider of intrastate and interstate long
distance services located in American Fork, Utah, serving
approximately 160 customers. On January 26, 2005, the Bureau
issued a Letter of Inquiry (``LOI'') directing UNI to provide
information about its compliance with the Commission's
registration requirements and reporting and contribution
requirements involving the Universal Service Fund, the TRS Fund,
and the NANPA Fund. UNI submitted a response to the Bureau's LOI
on March 20, 2005.15 In September and October, 2005, UNI
submitted supplemental information.
II. AGREEMENT
8. 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.
9. 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, UNI 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.
10. UNI agrees that it will make a voluntary contribution
to the United States Treasury in the amount of $15,000, in five
equal installments of $3,000 each paid over a five-month period,
with the first payment due 30 days after the Effective Date and
each of the four 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. 200632080006''
and ``FRN No. 0011-1796-03.'' 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.
11. For purposes of settling the matters set forth herein,
UNI 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 create, maintain
and update an FCC Compliance Manual. Company personnel
shall have ready access to the Compliance Manual and are
to follow the procedures contained in it. The Compliance
Manual will, among other things, describe the regulatory
fee, universal service, Telecommunications Relay Service
and North American Numbering Plan Administration rules
and requirements as they apply to UNI. The Compliance
Manual will set forth a schedule of filing and payment
dates associated with these regulatory programs, and UNI
will create compliance notifications that alert the
Company to upcoming filing and payment dates. 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 for new
employees within the first 30 days of employment.
(c) Review and Monitoring. The Company will review the FCC
Compliance Manual and FCC Compliance Training Program
annually to ensure that they are maintained in a proper
manner and continue to address the objectives set forth
therein.
(d) Company Software Redesign. Within 90 days of the
Effective Date, the Company will modify the software it
utilizes to maintain financial data so that it can break
out the financial details into the components required
for FCC filings.
(e) Termination. UNI's obligation under this Paragraph 11
shall expire 24 months after the Effective Date.
12. 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 UNI
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 UNI with
respect to UNI's basic qualifications, including its character
qualifications, to be a Commission licensee or authorized common
carrier.
13. 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 UNI
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 UNI of the Act,
the rules, or the Order.
14. UNI 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. UNI shall
retain the right to challenge Commission interpretation of the
Consent Decree or any terms contained herein.
15. UNI'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.
16. 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.
17. 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 UNI nor the Commission shall contest the
validity of the Consent Decree or the Adopting Order, and UNI
shall waive any statutory right to a trial de novo.
18. 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.
19. 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 UNI does not
expressly consent) that provision will be superseded by such
Commission rule or order.
20. UNI 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.
21. This Consent Decree may be signed in counterparts.
________________________________
Kris Anne Monteith
Chief, Enforcement Bureau
Federal Communications
Commission
________________________________
Date
________________________________
Preston Stewart
President
United Networks International,
Inc.
________________________________
Date
_________________________
1 47 U.S.C. § 254.
2 47 C.F.R. §§ 1.1157, 52.17, 54.706, 54.711, 64.604, 64.1195.
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
Preston Stewart, President, United Networks international, Inc.
(January 26, 2005).
7 47 C.F.R. § 64.1195(a).
8 47 U.S.C. § 254(d); 47 C.F.R. §§ 54.706(a), 54.711(a).
9 47 U.S.C. § 225(b)(1).
10 47 C.F.R. § 64.604(c)(5)(iii)(A).
11 47 U.S.C. § 251(e)(1).
12 47 C.F.R. § 52.17(a).
13 47 U.S.C. § 159(a)(1); see also 47 C.F.R. § 1.1151.
14 See 47 C.F.R. §§ 1.1154, 1.1157(b)(1).
15 See Letter from Preston Stewart, President, United Networks
International, Inc., to David Janas, Special Counsel,
Investigations and Hearings Division, Enforcement Bureau (March
20, 2005).