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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                   )                               
                                                                   
                                   )                               
     In the Matter of                                              
                                   )    File Number: EB-06-LA-171  
     Federal Express Corporation                                   
                                   )   NAL/Acct. No. 200632900013  
     Licensee of Station WQAS435                                   
                                   )              FRN: 0010662195  
     Bloomington, California                                       
                                   )                               
                                                                   
                                   )                               


                                FORFEITURE ORDER

   Adopted: May 2, 2007   Released:  May 4, 2007

   By the Regional Director, Western Region, Enforcement Bureau:

   I.  INTRODUCTION

    1. In this Forfeiture Order ("Order"), we issue a monetary forfeiture in
       the amount of four thousand dollars ($4,000) to Federal Express
       Corporation ("Fed Ex"), for willful and repeated violation of Section
       1.903(a) of the Commission's Rules ("Rules"). On August 17, 2006, the
       Enforcement Bureau's Los Angeles Office issued a Notice of Apparent
       Liability for Forfeiture ("NAL") in the amount of $4,000 to Fed Ex
       after determining that Fed Ex apparently willfully and repeatedly
       operated on 460.250 MHz, a frequency not authorized by its license,
       WQAS435. In this Order, we consider Fed Ex's argument that it did not
       willfully or repeatedly operate in violation of the Rules.

   II. BACKGROUND

    2. On June 15, 2006, the Enforcement Bureau's Los Angeles Office received
       an interference complaint from the City of Riverside, California,
       Police Department, who reported that they had been receiving
       co-channel interference to their radio system licensed to operate on
       460.250 MHz during early morning tactical operations for several
       weeks. Riverside Police also reported that they had previously used
       their own direction finding equipment and located the interference to
       the Fed Ex package distribution facility in nearby Bloomington,
       California. After locating the interference, Riverside Police
       Department personnel stated that they immediately contacted Fed Ex
       personnel, who agreed to stop operating and correct the problem.
       Several days later, however, the Riverside Police again noticed the
       interference on 460.250 MHz. The Riverside Police then contacted the
       FCC Enforcement Bureau's Los Angeles Office. A review of the
       Commission's records by the Los Angeles Office revealed that the Fed
       Ex license, WQAS435, did not include authorization for Fed Ex to
       operate on 460.250 MHz.

    3. On June 23, 2006, during early morning hours, an agent from the Los
       Angeles Office used mobile direction finding techniques to locate
       radio operations from multiple portable transmitters operating on
       460.250 MHz from within the Fed Ex facility in Bloomington. The
       communications were not identified by any call sign. After locating
       the stations, the Los Angeles agent interviewed Fed Ex personnel and
       managers. Fed Ex's Assistant Hub Manager recalled that after receiving
       the interference complaint from Riverside Police, he reported the
       problem to Fed Ex's radio service company. No follow-up apparently
       occurred between Fed Ex and the radio service company between June 15,
       2006 and June 23, 2006. The Los Angeles agent measured the frequencies
       of several other radio channels programmed into the portable radios in
       use at the Fed Ex facility and discovered that, in addition to 460.250
       MHz, four other channels were installed which were not authorized by
       the WQAS435 license. The Los Angeles agent informed Fed Ex's Local
       City Manager that the current license did not authorize the use of the
       460.250 MHz, and the other four frequencies programmed into the
       radios. The Fed Ex Local City Manager stated that he would immediately
       stop using 460.250 MHz, and check to make sure all frequencies used in
       the future were authorized.

    4. On August 17, 2006, the Los Angeles Office issued a NAL in the amount
       of $4,000 to Fed Ex. In the NAL, the Los Angeles Office found that Fed
       Ex apparently willfully and repeatedly violated Section 1.903(a) of
       the Rules by operating on 460.250 MHz, a frequency not authorized by
       its license, WQAS435. Fed Ex filed a response to the NAL on September
       20, 2006 ("Response"). In its Response, Fed Ex argues that its
       violation was not willful, as Fed Ex was not made fully aware of the
       interference by the Riverside Police Department. Fed Ex also argues
       that the violation was not repeated, because Fed Ex was able to
       resolve the interference the same day it was notified of the
       interference by the Los Angeles FCC agent.

   III.  DISCUSSION

    5. The proposed forfeiture amount in this case was assessed in accordance
       with Section 503(b) of the Act, Section 1.80 of the Rules, and The
       Commission's Forfeiture Policy Statement and Amendment of Section 1.80
       of the Rules to Incorporate the Forfeiture Guidelines. In examining
       the Response, Section 503(b) of the Act requires that the Commission
       take into account the nature, circumstances, extent and gravity of the
       violation and, with respect to the violator, the degree of
       culpability, any history of prior offenses, ability to pay, and other
       such matters as justice may require.

    6. Section 1.903(a) of the Rules requires that stations in the Wireless
       Radio Services must be used and operated only in accordance with the
       rules applicable to their particular service, and with a valid
       authorization granted by the Commission. The Fed Ex land mobile
       license, WQAS435, does not include an authorization to operate on
       460.250 MHz in the Riverside, California area. On June 15, 2006,
       Riverside Police reported to the Los Angeles Office that they were
       continuing to experience co-channel interference to their operations
       on 460.250 MHz. Riverside Police further reported that they had
       previously located the interference to Fed Ex's operations in
       Bloomington, California, had contacted Fed Ex about the interference,
       and had been assured by Fed Ex personnel that they would cease
       operations on 460.250 MHz and that the interference would be resolved.
       On June 23, 2006, a Los Angeles FCC agent determined that Fed Ex was
       operating its land mobile station, WQAS435, on 460.250 MHz, a
       frequency not authorized by its license.

    7. In its Response, Fed Ex does not dispute that it was operating on
       460.250 MHz. Instead, Fed Ex focuses its response on the steps that it
       took to respond to the Riverside Police Department's complaint of
       interference. Fed Ex acknowledges that the Riverside Police Department
       advised it, in person, that they were experiencing co-channel
       interference and further acknowledges that Fed Ex was unable to
       determine the source of the interference, until the FCC agent followed
       up after receiving the complaint from the Riverside Police Department
       and determined that Fed Ex was using handheld radios on frequencies
       not authorized by its license. Fed Ex argues that its response to the
       complaint from the Riverside Police Department was immediate and
       therefore its violation was not willful. In addition, Fed Ex argues
       that when it was investigated by the Los Angeles FCC agent concerning
       the interference, days later, it immediately acted and the problem was
       permanently resolved that same day.

    8. The NAL issued by the Los Angeles Office found that Fed Ex apparently
       violated Section 1.903(a) by operating on a frequency not authorized
       on its license. While the investigation by the Los Angeles Office was
       initiated because of the complaint of interference by the Riverside
       Police Department, Fed Ex was not found apparently liable for causing
       interference to the Riverside Police Department. Instead, Fed Ex was
       found apparently liable of operating its land mobile station, WQAS435,
       on 460.250 MHz, a frequency not authorized by that license. Fed Ex
       offers no evidence to dispute the Los Angeles Office finding that Fed
       Ex was operating WQAS435 on 460.250 MHz on June 15, 2006, and June 23,
       2006. Fed Ex also does not dispute the Los Angeles Office's finding
       that Fed Ex personnel acknowledged continued operation on 460.250 MHz,
       even after the initial complaint from the Riverside Police Department.
       In addition, Fed Ex does not dispute the Los Angeles Office's finding
       that 460.250 MHz was programmed into the portable radios in use at the
       Fed Ex facility.

    9. Because Fed Ex has offered no evidence to refute the finding that it
       repeatedly operated radios on a frequency not authorized by its
       license, we affirm the Los Angeles Office's findings. A licensee is
       required to operate on the frequency stated in its authorization. We
       acknowledge that Fed Ex immediately stopped operation on 460.250 MHz
       after the Los Angeles FCC agent informed Fed Ex that the operation was
       not authorized. However, as the Los Angeles Office noted in the NAL, a
       licensee is expected to correct errors when they are brought to the
       licensee's attention and that such correction is not grounds for a
       downward adjustment in the forfeiture.

   10. We have examined the Response to the NAL pursuant to the statutory
       factors above, and in conjunction with the Forfeiture Policy
       Statement. As a result of our review, we conclude that Fed Ex
       willfully and repeatedly violated Section 1.903(a) of the Rules.
       Considering the entire record and the factors listed above, we find
       that neither reduction nor cancellation of the proposed $4,000
       forfeiture is warranted.

   IV. ORDERING CLAUSES

   11.  ACCORDINGLY, IT IS ORDERED that, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended ("Act"), and Sections 0.111,
       0.311 and 1.80(f)(4) of the Commission's Rules, Federal Express
       Corporation IS LIABLE FOR A MONETARY FORFEITURE in the amount of
       $4,000 for willfully and repeatedly violating Section 1.903(a) of the
       Rules.

   12. Payment of the forfeiture shall be made in the manner provided for in
       Section 1.80 of the Rules within 30 days of the release of this Order.
       If the forfeiture is not paid within the period specified, the case
       may be referred to the Department of Justice for collection pursuant
       to Section 504(a) of the Act. Payment of the forfeiture must be made
       by check or similar instrument, payable to the order of the Federal
       Communications Commission.  The payment must include the NAL/Acct. No.
       and FRN No. referenced above.  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. Requests for full payment under an installment plan should be
       sent to: Associate Managing Director - Financial Operations, Room
       1A625, 445 12th Street, S.W., Washington, D.C. 20554.

   13. IT IS FURTHER ORDERED that a copy of this Order shall be sent by First
       Class Mail and Certified Mail Return Receipt Requested to Fed Ex
       Corporation, at its address of record.

   FEDERAL COMMUNICATIONS COMMISSION

   Rebecca L. Dorch

   Regional Director, Western Region

   Enforcement Bureau

   47 C.F.R. S 1.903(a).

   Notice of Apparent Liability for Forfeiture, NAL/Acct. No. 200632900013
   (Enf. Bur., Western Region, Los Angeles Office, released August 17, 2006).

   47 U.S.C. S 503(b).

   47 C.F.R. S 1.80.

   12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999).

   47 U.S.C. S 503(b)(2)(E).

   Fed Ex relies on a September 18, 2006, letter from its radio service
   company, in which the company assures Fed Ex that its equipment is "always
   on licensed frequencies." However, the radio service company also
   acknowledges that it resolved the problem involving a single channel based
   on the information provided by the FCC agent.

   Dominic DeNaples, 19 FCC Rcd 12303 (EB 2004).

   AT&T Wireless Services, Inc. 17 FCC Rcd 21866, 21871-76 (2002).

   47 U.S.C. S 503(b), 47 C.F.R. SS 0.111, 0.311, 1.80(f)(4), 1.903(a).

   47 U.S.C. S 504(a).

   See 47 C.F.R. S 1.1914.

   Federal Communications Commission DA 07-1995

   1

   3

   Federal Communications Commission DA 07-1995