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Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-04-IH-0522
In the Matter of
) NAL/Acct. No. 200532080138
Teletronics, Inc.
) FRN No. 0014009278
)
ORDER
Adopted: April 18, 2007 Released: May 11, 2007
By the Commission:
1. In this Order, we adopt the attached Consent Decree entered into
between the Federal Communications Commission (the "Commission") and
Teletronics, Inc. ("Teletronics"). The Consent Decree terminates the
enforcement proceeding initiated by the Enforcement Bureau against
Teletronics 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 Teletronics 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 there are no
substantial or material questions of fact as to whether Teletronics
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
)
) File No. EB-04-IH-0522
In the Matter of
) NAL/Acct. No.200532080138
Teletronics, Inc.
) FRN No. 0014009278
)
CONSENT DECREE
1. The Federal Communications Commission (the "Commission" or "FCC") and
Teletronics, Inc. ("Teletronics" or the "Company"), by their
authorized representatives, hereby enter into this Consent Decree for
the purpose of terminating the Commission's investigation into whether
Teletronics 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 Service, 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 of its bureaus and offices.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "Teletronics" means Teletronics, Inc. and its predecessors-in-interest
and successors-in-interest.
e. "Parties" means Teletronics 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
October 28, 2004 Letter of Inquiry regarding whether Teletronics
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 and pursuant
to Commission Order, all carriers that provide interstate
telecommunications service and certain other providers of interstate
telecommunications must register with the Commission through
submission of FCC Form 499-A. In addition, section 254(d) of the Act
and sections 54.706(a) and 54.711(a) of the Commission's rules require
telecommunications carriers that provide interstate telecommunications
services and certain other providers of interstate telecommunications
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. Teletronics, Inc., also doing business as Teletronics Services, Inc.,
is an Ohio-based telecommunications provider that offers integrated
telecommunications systems to business users. It began reselling
intrastate, interstate, and international long-distance service as
part of its packaged offerings in 1999.
8. On October 28, 2004, the Bureau issued a letter of inquiry ("LOI")
directing Teletronics, among other things, to submit a sworn written
response to a series of questions relating to Teletronics' apparent
failure to satisfy its registration, filing and payment obligations.
Teletronics filed its responses on November 24, 2004, and January 3,
2005.
9. On July 25, 2005, the Commission issued a Notice of Apparent Liability
for Forfeiture and Order ("NAL"), proposing that Teletronics be held
liable for a forfeiture of $692,000 under section 503(b)(1)(B) of the
Act, and ordering Teletronics 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
canceled. The NAL also ordered Teletronics by the same date to submit
to the Universal Service Administrative Company ("USAC") all annual
Telecommunications Reporting Worksheets required under the
Commission's rules from the date that Teletronics commenced providing
telecommunications services in the United States to the date of the
NAL. As of the Effective Date, Teletronics has submitted all required
Worksheets and paid all past due debts described in the NAL. In
addition, Teletronics 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
10. 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.
11. 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, Teletronics 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.
12. Teletronics agrees that it will make a voluntary contribution to the
United States Treasury in the amount of $250,000, beginning with one
installment of $40,000 due 30 days after the Effective Date and with
twenty-four equal installments of $8,750 due the first day of each
succeeding month, beginning with second full month after the Effective
Date. 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. 200532080138" and "FRN No. 0014009278."
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 911-6229.
13. For purposes of settling the matters set forth herein, Teletronics
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 will 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 Teletronics. The Compliance Manual will
set forth a schedule of filing and payment dates associated with these
regulatory programs, and Teletronics will create compliance
notifications that alert the Company to upcoming filing and payment
dates. The Compliance Manual will encourage personnel to contact the
Company's Designated Contact, attorneys, the Company's Chief Executive
and/or the Company's Chief Financial Officer with any questions or
concerns that arise with respect to the Company's FCC compliance. The
Company shall submit to the Bureau a final version of its Compliance
Manual thirty (30) days after the Effective Date.
b. Compliance Training Program. Teletronics will establish an FCC
compliance training program for any employee or consultant who engages
in activities related to FCC regulation of Teletronics. Training
sessions will be conducted at least annually for such employees or
consultants to ensure compliance with the Act and the FCC's
regulations and policies and, for new employees or consultants who are
engaged in such activities, within the first thirty (30) days of
employment.
c. Designated Contact. Teletronics will designate one employee or
consultant as the point of contact for all telecommunications
compliance matters.
d. Review and Monitoring. Teletronics 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. Teletronics will ensure that any audit reviews specifically
consider compliance with FCC regulatory requirements.
f. Supplemental Measures. The Compliance Plan will be supplemented by
membership in a trade organization and other means of keeping
responsible company personnel informed of FCC regulatory compliance
requirements.
g. Termination. Teletronics' obligations under this Paragraph 13 shall
expire twenty-four (24) months after the Effective Date.
14. In express reliance on the covenants and representations contained
herein, the Commission agrees to rescind the NAL and terminate the
Investigation.
15. 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 Teletronics 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 Teletronics
with respect to Teletronics' basic qualifications, including its
character qualifications, to be a Commission licensee or authorized
common carrier.
16. 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 Teletronics 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
Teletronics of the Act, the rules, or the Order.
17. Teletronics 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. Teletronics shall retain the right to
challenge Commission interpretation of the Consent Decree or any terms
contained herein.
18. Teletronics' 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.
19. 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.
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 Teletronics nor the Commission shall contest the validity of
the Consent Decree or the Adopting Order, and Teletronics shall waive
any statutory right to a trial de novo.
21. 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.
22. 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 Teletronics does not expressly consent) that
provision will be superseded by such Commission rule or order.
23. Teletronics 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.
24. This Consent Decree may be signed in counterparts.
For the Federal Communications Commission
By: ______________________________
Marlene H. Dortch
Secretary
______________________________
Date
For Teletronics, Inc.
Mr. Gale Kenney
Chief Executive Officer
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. S 154(i), 503(b).
47 U.S.C. S 254.
See Letter from Hillary DeNigro, Deputy Chief, Investigations and Hearings
Division, Enforcement Bureau, FCC to Gale Kenney, Chief Executive Officer,
Teletronics, Inc., dated October 28, 2004 ("October 28, 2004 LOI").
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 U.S.C. S 254(d), 47 C.F.R. S 64.1195(a); Universal Service Contribution
Methodology, Federal-State Joint Board on Universal Service, 1998 Biennial
Regulatory Review - Streamlined Contributor Reporting Requirements
Associated with Administration of Telecommunications Relay Service, North
American Numbering Plan, Local Number Portability, and Universal Service
Support Mechanisms, Telecommunications Services for Individuals with
Hearing and Speech Disabilities, and the Americans with Disabilities Act
of 1990, Administration of the North American Numbering Plan and North
American Numbering Plan Cost Recovery Contribution Factor and Fund Size,
Number Resource Optimization, Telephone Number Portability,
Truth-In-Billing and Billing Format, IP-Enabled Services, Report and Order
and Notice of Proposed Rulemaking, WC Docket Nos. 06-122 and 04-36, CC
Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, and 98-170, 21
FCC Rcd 7518, 7548-49, para. 61 (2006).
47 U.S.C. S 254(d); 47 C.F.R. SS 54.706(a), 54.711(a). Each such entity
must contribute to the Universal Service Fund unless it qualifies for an
exception, such as the de minimis exception. See, e.g., 47 C.F.R. S
54.708. This entity must still, however, comply with certain other
registration, reporting and contribution obligations in connection with
other Commission programs even if it qualifies for the de minimis
exception for purposes of the Universal Service Fund in a given year. See,
e.g., Wireline Competition Bureau Reminds De Minimis Telecommunications
Providers of Certain FCC Registration, Reporting, and Contribution
Requirements, Public Notice, WC Docket No. 06-122 (WCB rel. Jan. 31, 2007)
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 www.teletronics-inc.com.
See October 28, 2004 LOI.
See Letter from David A. Ferris, Counsel for Teletronics, Inc., Ferris and
Neuman, L.L.P., to Gerald H. Chakerian, Attorney, Investigations and
Hearings Division, Enforcement Bureau, FCC, dated November 24, 2004;
Letter from David A. Ferris, Counsel for Teletronics, Inc., Ferris and
Neuman, L.L.P., to Gerald H. Chakerian, Attorney, Investigations and
Hearings Division, Enforcement Bureau, FCC, dated January 3, 2005.
Teletronics, Inc., Notice of Apparent Liability and Order, 20 FCC Rcd
13291 (2005) ("Teletronics NAL").
Federal Communications Commission FCC 07-57
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Federal Communications Commission FCC 07-57
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