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Before the
Federal Communications Commission
Washington, D.C. 20554
)
In the Matter of ) File No. EB-04-IH-0519
Communication Services Integrated, ) NAL/Acct. No. 200632080004
Inc.
) FRN No. 0012390167
)
ORDER
Adopted: September 14, 2006 Released: September 15, 2006
By the Commission:
1. In this Order, we adopt the attached Consent Decree entered into
between the Federal Communications Commission ("the Commission") and
Communication Services Integrated, Inc. ("CSII"). The Consent Decree
terminates the enforcement proceeding initiated by the Enforcement
Bureau against CSII for possible violations of section 254 of the
Communications Act of 1934, as amended ("the Act"), relating to
universal service, and, among others, sections 1.1157, 52.17, 54.706,
54.711, 64.604, and 64.1195 of the Commission's rules relating to
carrier registration, revenue reporting, and contribution to certain
regulatory programs.
2. The Commission and CSII 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 there are no
substantial or material questions of fact as to whether CSII 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) and 503(b)
of the Communications Act of 1934, as amended, the Consent Decree
attached to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED and the Notice of Apparent Liability for Forfeiture IS
CANCELLED.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
Before the
Federal Communications Commission
Washington, DC 20554
)
In the Matter of ) File No. EB-05-IH-0189
Communication Services Integrated, ) NAL/Acct. No. 200632080004
Inc.
) FRN No. 0012390167
)
CONSENT DECREE
1. The Federal Communications Commission (the "FCC" or "Commission") and
Communication Services Integrated, Inc. ("CSII"), by their authorized
representatives, hereby enter into this Consent Decree for the purpose
of terminating an investigation into whether CSII violated section 254
of the Communications Act of 1934, as amended (the "Act"), relating to
universal service, and certain of the Commission's rules relating to
carrier registration, universal service, the Telecommunications Relay
Services, the North American Numbering Plan Administration, and
regulatory fees.
2. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C. S
151 et seq.
b. "Commission" and "FCC" mean the Federal Communications Commission and
all its bureaus and offices.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "CSII" means Communications Services Integrated, Inc. and its
predecessors-in-interest and successors-in-interest.
e. "Parties" means CSII and the Commission.
f. "Order" or "Adopting Order" means an Order of the Commission adopting
the terms of this Consent Decree without change, addition, deletion,
or modification.
g. "Effective Date" means the date on which the Commission releases the
Adopting Order.
h. "Investigation" means the investigation commenced by the Bureau's
March 10, 2005 Letter of Inquiry regarding whether CSII 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, the Telecommunications
Relay Service, the North American Numbering Plan Administration, and
regulatory fees.
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. 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 on the basis of their interstate and international
end-user telecommunications revenues.
4. Section 225(b)(1) of the Act 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 Telecommunications Relay Services
Fund based upon its interstate and international end-user
telecommunications revenues.
5. Section 251(e) of the Act directs the Commission to ensure the
availability of telephone numbers on an equitable basis, and that the
costs of establishing numbering administration are borne by all
carriers on a competitively neutral basis. 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."
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. 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 telecommunications revenues.
7. CSII is a provider of interstate telecommunications services. On March
10, 2005, the Bureau initiated the Investigation by issuing a Letter
of Inquiry ("LOI") directing CSII to provide information about its
compliance with, among other matters, the Commission's universal
service reporting and contribution requirements. CSII submitted a
response to the Bureau's LOI on March 28, 2005, and provided
supplemental information to the Bureau on March 30, 2005.
8. On October 31, 2005, the Commission adopted and released a Notice of
Apparent Liability for Forfeiture and Order ("NAL") proposing that
CSII be held liable for a forfeiture of $462,638 under section
503(b)(1)(B) of the Act, and ordering CSII either to pay the proposed
forfeiture or file a written response within thirty (30) days of the
NAL release date stating why the proposed forfeiture should be reduced
or cancelled. The NAL further ordered that CSII by the same date
submit to the Universal Service administrative Company ("USAC") all
annual Telecommunications Reporting Worksheets required under the
Commission's rules from the date that CSII commenced providing
telecommunications services in the United States to the date of the
NAL. As of the Effective Date, CSII has submitted all required
Worksheets and paid all past due debts described in the NAL. In
addition, CSII has presented evidence sufficient to show that it would
be unable to pay the forfeiture amount proposed in the NAL and would
be eligible under the Commission's rules and the Act for a downward
adjustment of the forfeiture amount.
II. AGREEMENT
9. The Parties agree that the provisions of this Consent Decree shall be
subject to final approval by the Commission, through entry of the
Order, which shall immediately resolve and terminate the
Investigation.
10. 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, CSII 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.
11. CSII agrees that it will make a voluntary contribution to the United
States Treasury in the amount of $250,000 within thirty (30) calendar
days after the Effective Date of the Adopting Order. The payment must
be made by check or similar instrument, payable to the order of the
Federal Communications Commission. The payment must include "NAL/Acct.
No. 200632080004" and "FRN No. 0012390167." 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.
12. For purposes of settling the matters set forth herein, CSII 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. CSII 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 CSII. The Compliance Manual will set
forth a schedule of filing and payment dates associated with these
regulatory programs, and CSII will create compliance notifications
that alert the Company to upcoming filing and payment dates. The
Compliance Manual will encourage personnel to contact CSII's
Designated Contact, President, and/or Chief Financial Officer with any
questions or concerns that arise with respect to the Company's FCC
compliance. CSII shall submit to the Bureau a final version of its
Compliance Manual thirty (30) days after the Effective Date.
b. Compliance Training Program. CSII will establish an FCC compliance
training program for employees or consultants 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 or consultants engaged
in such activities, within the first 30 days of employment.
c. Designated Contact. CSII will designate one employee as the point of
contact for all telecommunications compliance matters.
d. Review and Monitoring. CSII 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.
e. Audits. CSII will ensure that external and internal audit reviews
specifically address compliance with FCC regulatory requirements.
f. Termination. CSII's obligation under this Paragraph 12 shall expire
twenty-four (24) months after the Effective Date.
13. In expressed reliance on the covenants and representations contained
herein, the Commission agrees to rescind the NAL and terminate the
Investigation.
14. The Commission 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 CSII concerning the matters that were the subject of
the Investigation. The Commission 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 CSII with respect to CSII's
basic qualifications, including its character qualifications, to be a
Commission licensee or authorized common carrier.
15. 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 CSII 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 CSII of the Act,
the rules, or this Order.
16. CSII 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 Commission issues an Order
adopting the Consent Decree without change, addition, modification, or
deletion. CSII shall retain the right to challenge Commission
interpretation of the Consent Decree or any terms contained herein.
17. CSII's decision to enter into this Consent Decree is expressly
contingent upon the Commission's issuance of an Order that is
consistent with this Consent Decree, and which adopts the Consent
Decree without change, addition, modification, or deletion.
18. 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.
19. 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 CSII nor the Commission shall contest the validity of the
Consent Decree or the Adopting Order, and CSII shall waive any
statutory right to a trial de novo.
20. 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.
21. 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 CSII does not expressly consent) that
provision will be superseded by such Commission rule or order.
22. CSII hereby agrees to waive any claims it may otherwise have under the
Equal Access to Justice Act, 5 U.S.C. S 504 and 47 C.F.R. S 1.1501 et
seq., relating to the matters addressed in this Consent Decree.
23. This Consent Decree may be signed in counterparts.
________________________________
Marlene H. Dortch
Secretary
Federal Communications Commission
________________________________
Date
________________________________
Gary E. Middlebrooks
Chief Executive Officer
Communication Services Integrated, Inc.
________________________________
Date
47 U.S.C. S 254.
47 C.F.R. SS 1.1157, 52.17, 54.706, 54.711, 64.604, 64.1195.
47 U.S.C. SS 154(i) and 503(b).
47 U.S.C. S 254.
See Letter from Hillary S. DeNigro, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, FCC to Gary Middlebrooks, Chief
Executive Officer, Communication Services Integrated, Inc., dated March
10, 2005.
47 U.S.C. S 254(d).
47 C.F.R. SS 1.1157, 52.17, 54.706, 54.711, 64.604, 64.1195.
47 C.F.R. S 64.1195(a).
47 U.S.C. S254(d);47 C.F.R. SS 54.706(a), 54.711(a).
47 U.S.C. S 225(b)(1).
47 C.F.R. S 64.604(c)(5)(iii)(A).
47 U.S.C. S 251(e).
47 C.F.R. S 52.17(a).
47 U.S.C. S 159(a)(1); see also 47 C.F.R. S 1.1151.
See 47 C.F.R. SS 1.1154, 1.1157(b)(1).
See Response to Data Requests/Request for Documents EB-05-IH-0189, dated
March 28, 2005 ("March 28, 2005 LOI Response").
See CSII Supplemental Response, dated March 30, 2005 ("March 30, 2005 CSII
Supplemental LOI Response").
Communication Services Integrated, Inc., Notice of Apparent Liability, 20
FCC Rcd 17251 (2005).
Federal Communications Commission FCC 06-135
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Federal Communications Commission FCC 06-135