Click here for Adobe Acrobat version
Click here for Microsoft Word version

******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



                                 April 28, 2006

   DA 06-951

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED

   Robert J. Buhay, Chief Financial Officer

   NextiraOne, LLC.

   c/o Robert A. Salerno, Esq.

   Morrison & Foerster LLP

   2000 Pennsylvania Avenue, N.W.

   Washington, DC 20006-1888

   Re: Notice of Suspension and Initiation of Debarment Proceedings,

   File No. EB-06-IH-1392

   Dear Mr. Buhay:

   The Federal Communications Commission ("FCC" or "Commission") has received
   notice of the conviction of NextiraOne, LLC ("NextiraOne") for wire fraud
   in violation of 18 U.S.C. S 1343 in connection with NextiraOne's
   participation in the schools and libraries universal service support
   mechanism ("E-rate program"). Consequently, pursuant to 47 C.F.R.
   S 54.521, this letter constitutes official notice of NextiraOne's
   suspension from the E-rate program. In addition, the Enforcement Bureau
   ("Bureau") hereby notifies NextiraOne that we are commencing debarment
   proceedings against it.

   Although we suspend NextiraOne and initiate debarment proceedings, we
   acknowledge that NextiraOne has submitted a petition to waive the
   debarment rules ("Waiver Petition"). We further note that the Department
   of Justice submitted a letter in reference to that petition. We emphasize
   that the arguments and evidence presented in both submissions will be
   evaluated and considered during the debarment proceeding.

   I. Notice of Suspension

   The Commission has established procedures to prevent persons who have
   "defrauded the government or engaged in similar acts through activities
   associated with or related to the schools and libraries support mechanism"
   from receiving the benefits associated with that program. NextiraOne pled
   guilty to wire fraud for activities in connection with its participation
   in the E-rate program with the Oglala Nation Education Coalition ("ONEC")
   schools in the District of South Dakota.

   According to the plea, in December 2000, NextiraOne (known as Williams
   Communications Services, Inc. at that time) falsely promised ONEC schools
   that they could participate in the E-rate program for free; in January
   2001, a member of the Oglala tribe, under Williams' guidance, submitted to
   the administrator of the E-rate program, the Universal Service
   Administrative Company ("USAC"), E-rate applications that contained
   non-competitive manufacturer "list" prices; in December 2001, NextiraOne
   filed an invoice with USAC even though no equipment had been delivered to
   ONEC schools; and beginning in December 2001, NextiraOne re-engineered the
   ONEC networks such that the costs decreased, but failed to notify ONEC. In
   January 2002, a billing employee at NextiraOne submitted an invoice by
   facsimile to USAC that made it falsely appear that ONEC had been billed
   for non-discounted portions of the equipment and services funded by
   E-rate, as well as certain ineligible items, and as a result, NextiraOne
   over-billed the E-rate program in excess of $1 million.

   Pursuant to section 54.521(a)(4) of the Commission's rules, NextiraOne's
   conviction requires the Bureau to suspend it from participating in any
   activities associated with or related to the schools and libraries support
   mechanism, including the receipt of funds or discounted services through
   the schools and libraries support mechanism, or consulting with,
   assisting, or advising applicants or service providers regarding the
   schools and libraries support mechanism. NextiraOne's suspension becomes
   effective upon the earlier of its receipt of this letter or publication of
   notice in the Federal Register.

   Suspension is immediate pending the Bureau's final debarment
   determination. In accordance with the Commission's debarment rules,
   NextiraOne may contest this suspension or the scope of this suspension by
   filing arguments in opposition to the suspension, with any relevant
   documentation. NextiraOne's request must be received within 30 days after
   it receives this letter or after notice is published in the Federal
   Register, whichever comes first. Such requests, however, will not
   ordinarily be granted. The Bureau may reverse or limit the scope of
   suspension only upon a finding of extraordinary circumstances. Absent
   extraordinary circumstances, the Bureau or the Commission will decide any
   request for reversal or modification of suspension within 90 days of its
   receipt of such request.

   NextiraOne asks us to toll its mandated suspension from the E-rate
   program. NextiraOne offers no justification, however, for its request that
   we depart from our mandated suspension procedure. We will consider
   NextiraOne's arguments regarding the appropriateness of debarment at the
   debarment stage of the proceeding. Accordingly, we deny NextiraOne's
   request that we toll the suspension.

   II. Initiation of Debarment Proceedings

   NextiraOne's guilty plea to criminal conduct in connection with the E-rate
   program, in addition to serving as a basis for immediate suspension from
   the program, also serves as a basis for the initiation of debarment
   proceedings against the company. NextiraOne's conviction falls within the
   categories of causes for debarment expressly contained in section
   54.521(c) of the Commission's rules. Therefore, pursuant to section
   54.521(a)(4) of the Commission's rules, we initiate debarment proceedings
   against NextiraOne.

   As with its suspension, NextiraOne may contest debarment or the scope of
   the proposed debarment by filing arguments and any relevant documentation
   within 30 calendar days of the earlier of the receipt of this letter or of
   publication in the Federal Register. During this debarment phase of the
   proceeding, we will consider the arguments NextiraOne presents in its
   Waiver Petition. We will also weigh the views of the Department of Justice
   in considering NextiraOne's debarment.

   Absent extraordinary circumstances, the Bureau or the Commission will
   debar NextiraOne. Within 90 days of receipt of any opposition to
   NextiraOne's suspension and proposed debarment, the Bureau or the
   Commission, in the absence of extraordinary circumstances, will provide
   NextiraOne with notice of its decision to debar. If the Bureau or the
   Commission decides to debar NextiraOne, its decision will become effective
   upon the earlier of NextiraOne's receipt of a debarment notice or
   publication of the decision in the Federal Register.

   If and when NextiraOne's debarment becomes effective, it will be
   prohibited from participating in activities associated with or related to
   the schools and libraries support mechanism for some period of time.

   Please direct any responses to the following address:

   Diana Lee, Esq.

   Federal Communications Commission

   Enforcement Bureau

   Investigations and Hearings Division

   Room 4-C443

   445 12^th Street, S.W.

   Washington, D.C. 20554

   If NextiraOne submits its response via hand-delivery or non-United States
   Postal Service delivery (e.g., Federal Express, DHL, etc.), please send
   the response to Ms. Lee at the following address:

   Federal Communications Commission

   9300 East Hampton Drive

   Capitol Heights, MD 20743

   If NextiraOne has any questions, please contact Ms. Lee via mail, by
   telephone at (202) 418-1420 or by e-mail at diana.lee@fcc.gov. If Ms. Lee
   is unavailable, you may contact Eric Bash by telephone at (202) 418-1188
   and by e-mail at eric.bash@fcc.gov.

   Sincerely yours,

   Kris A. Monteith

   Chief

   Enforcement Bureau

   cc: James J. Regan, Esq., Crowell and Moring LLP (via E-Mail)

   E. Ashton Johnston, Esq., DLA Piper Rudnick Gray Cary, US LLP (via E-Mail)

   Eric C. Hoffmann, Esq., United States Department of Justice, Antitrust
   Division (via E-Mail)

   Alicia Bentley, Esq., United States Department of Justice, Civil Division
   (via E- Mail)

   Kristy Carroll, Esq., USAC (via E-Mail)

   Any further reference in this letter to "your conviction" refers to
   NextiraOne's April 20, 2006 guilty plea and conviction of this count.
   United States v. NextiraOne, LLC, Criminal Docket No. 4:06-cr-40041-LLP,
   Plea Agreement (D.S.D. April 20, 2006) ("NextiraOne  Plea Agreement" or
   "Plea Agreement"). Sentence was imposed on April 20, 2006 and entered on
   April 21, 2006.

   47 C.F.R. S 54.521; 47 C.F.R. S 0.111(a)(14) (delegating to the
   Enforcement Bureau authority to resolve universal service suspension and
   debarment proceedings pursuant to 47 C.F.R. S 54.521).

   See NextiraOne, LLC Petition for Waiver of Section 54.521 of the
   Commission's Rules, Petition for Waiver (filed April 14, 2006) ("Waiver
   Petition").

   See generally, Waiver Petition; Letter from Scott Hammond, Assistant
   Attorney General, Antitrust Division, Department of Justice, to Marlene E.
   Dortch, Secretary, Federal Communications (filed April 14, 2006).

   Second Report and Order, 18 FCC Rcd at 9225, P 66. The Commission's
   debarment rules define a "person" as "[a]ny individual, group of
   individuals, corporation, partnership, association, unit of government or
   legal entity, however, organized." 47 C.F.R. S 54.521(a)(6).

   47 C.F.R. S 54.521(a)(4). See Schools and Libraries Universal Service
   Support Mechanism, Second Report and Order and Further Notice of Proposed
   Rulemaking, 18 FCC Rcd 9202, 9225-9227, PP 67-74 (2003) ("Second Report
   and Order").

   Second Report and Order, 18 FCC Rcd at 9225, P 67; 47 U.S.C. S 254; 47
   C.F.R SS 54.502-54.503; 47 C.F.R. S 54.521(a)(4).

   Second Report and Order, 18 FCC Rcd at 9226, P 69; 47 C.F.R. S
   54.521(e)(1).

   Second Report and Order, 18 FCC Rcd at 9226, P 70; 47 C.F.R. S
   54.521(e)(4).

   Second Report and Order, 18 FCC Rcd at 9226, P 70.

   47 C.F.R. S 54.521(e)(5).

   See Second Report and Order, 18 FCC Rcd at 9226, P 70; 47 C.F.R. SS
   54.521(e)(5), 54.521(f).

   "Causes for suspension and debarment are the conviction of or civil
   judgment for attempt or commission of criminal fraud, theft, embezzlement,
   forgery, bribery, falsification or destruction of records, making false
   statements, receiving stolen property, making false claims, obstruction of
   justice and other fraud or criminal offense arising out of activities
   associated with or related to the schools and libraries support
   mechanism." 47 C.F.R. S 54.521(c). Such activities "include the receipt of
   funds or discounted services through the schools and libraries support
   mechanism, or consulting with, assisting, or advising applicants or
   service providers regarding schools and libraries support mechanism
   described in this section ([47 C.F. R.] S 54.500 et seq.)." 47 C.F.R. S
   54.521(a)(1).

   See Second Report and Order, 18 FCC Rcd at 9226, P 70; 47 C.F.R. SS
   54.521(e)(2)(i), 54.521(e)(3).

   Second Report and Order, 18 FCC Rcd at 9227, P 74.

   See id., 18 FCC Rcd at 9226, P 70; 47 C.F.R. S 54.521(e)(5).

   Id. The Commission may reverse a debarment, or may limit the scope or
   period of debarment upon a finding of extraordinary circumstances,
   following the filing of a petition by you or an interested party or upon
   motion by the Commission. 47 C.F.R. S 54.521(f).

   Second Report and Order, 18 FCC Rcd at 9225, P 67; 47 C.F.R. SS 54.521(d),
   54.521(g).

   NextiraOne, LLC

   April 28, 2006

   Page 3 of 5

                       Federal Communications Commission

                               Enforcement Bureau

                              445 12^th Street, SW

                             Washington, D.C. 20554