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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                          )                           
                                              File Nos. EB-07-SE-269  
     In the Matter of                     )                           
                                              Acct. No. 200832100047  
     Custer Telephone Cooperative, Inc.   )                           
                                              FRN No. 0001623321      
                                          )                           


                                     ORDER

   Adopted: May 19, 2008 Released: May 21, 2008

   By the Deputy Chief, Enforcement Bureau:

   1. In this Order, we adopt the attached Consent Decree entered into
   between the Enforcement Bureau ("Bureau") and Custer Telephone
   Cooperative, Inc. ("Custer"). The Consent Decree terminates an
   investigation by the Bureau against Custer for possible violations of
   section 20.19(d)(2) of the Commission's Rules ("Rules") regarding the
   inductive coupling hearing aid compatibility requirements.

   2. The Bureau and Custer have negotiated the terms of the Consent Decree
   that resolve these matters. A copy of the Consent Decree is attached
   hereto and incorporated by reference.

   3. After reviewing the terms of the Consent Decree and evaluating the
   facts before us, we find that the public interest would be served by
   adopting the Consent Decree and terminating the  investigations.

   4. In the absence of material new evidence relating to these matters, we
   conclude that our investigations raise no substantial or material
   questions of fact as to whether Custer possesses the basic qualifications,
   including those related to character, to hold or obtain any Commission
   license or authorization.

   5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the
   Communications Act of 1934, as amended, and sections 0.111 and 0.311 of
   the Rules, the Consent Decree attached to this Order IS ADOPTED.

   6. IT IS FURTHER ORDERED that the above-captioned investigation IS
   TERMINATED.

   7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
   shall be sent by first class mail and certified mail, return receipt
   requested, to Peter M. Connolly, Esq., Holland & Knight LLP, 2099
   Pennsylvania Avenue, NW, Ste. 100, Washington, DC 20006 and Dennis
   Thornock, Custer Telephone Cooperative, Inc., Box 324, 1111 Main Street,
   Challis, ID 83226.

   FEDERAL COMMUNICATIONS COMMISSION

   Susan McNeil

   Deputy Chief, Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                          )                           
                                                                      
                                          )                           
                                              File Nos. EB-07-SE-269  
     In the Matter of                     )                           
                                              Acct. No. 200832100047  
     Custer Telephone Cooperative, Inc.   )                           
                                              FRN No. 0001623321      
                                          )                           
                                                                      
                                          )                           


                                 CONSENT DECREE

   The Enforcement Bureau ("Bureau") and Custer Telephone Cooperative, Inc.
   ("Custer"), by their authorized representatives, hereby enter into this
   Consent Decree for the purpose of terminating the Bureau's investigations
   into whether Custer violated section 20.19(d)(2) of the Commission's Rules
   regarding inductive coupling hearing aid compatibility requirements.

   I. DEFINITIONS

   1. 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) "Adopting Order" means an Order of the Bureau adopting the terms of
   this Consent Decree without change, addition, deletion, or modification.

   (c) "Bureau" means the Enforcement Bureau of the Federal Communications
   Commission.

   (d) "Commission" and "FCC" mean the Federal Communications Commission and
   all of its bureaus and offices.

   (e) "Custer" means Custer Telephone Cooperative, Inc., and its
   predecessors-in-interest and successors-in-interest.

   (f) "Effective Date" means the date on which the Bureau releases the
   Adopting Order.

   (g) "Investigation" mean the investigation initiated by the Bureau's
   August 13, 2007 Letter of Inquiry ("LOI") regarding whether Custer
   violated the inductive coupling hearing aid compatibility requirements of
   section 20.19(d)(2) of the Rules.

   (h) "Parties" means Custer and the Bureau.

   (i) "Rules" means the Commission's regulations found in Title 47 of the
   Code of Federal Regulations.

   II. BACKGROUND

   2. Pursuant to section 20.19(d)(2) of the Rules, carriers are required to
   offer at least two handset models for each air interface that meet the
   inductive coupling standards for hearing aid compatibility.

   3. On August 13, 2007, the Bureau issued an LOI to Custer. The August 13,
   2007 LOI directed Custer, among other things, to submit a sworn written
   response to a series of questions relating to its compliance with the
   inductive coupling hearing aid compatibility requirements. Custer
   responded to the August 13, 2007 LOI on August 24, 2007. Custer filed a
   supplemental response on January 29, 2008.

   III. TERMS OF AGREEMENT

   4. Adopting Order. The Parties agree that the provisions of this Consent
   Decree shall be subject to final approval by the Bureau by incorporation
   of such provisions by reference in the Adopting Order without change,
   addition, modification, or deletion.

   5. Jurisdiction. Custer agrees that the Bureau has jurisdiction over it
   and the matters contained in this Consent Decree and has the authority to
   enter into and adopt this Consent Decree.

   6. Effective Date; Violations. The Parties agree that this Consent Decree
   shall become effective on the date on which the Bureau releases the
   Adopting Order. Upon release, the Adopting Order and this Consent Decree
   shall have the same force and effect as any other Order of the Bureau. Any
   violation of the Adopting Order or of the terms of this Consent Decree
   shall constitute a separate violation of a Bureau Order, entitling the
   Bureau to exercise any rights and remedies attendant to the enforcement of
   a Commission Order.

   7. Termination of Investigation. In express reliance on the covenants and
   representations in this Consent Decree and to avoid further expenditure of
   public resources, the Bureau agrees to terminate its investigation. In
   consideration for the termination of said investigation, Custer agrees to
   the terms, conditions, and procedures contained herein. The Bureau further
   agrees that in the absence of new material evidence, the Bureau 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 Custer 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 Custer with respect to
   Custer's basic qualifications, including its character qualifications, to
   be a Commission licensee or authorized common carrier.

   8. Compliance Plan. For purposes of settling the matters set forth herein,
   Custer agrees to maintain a Compliance Plan related to future compliance
   with the Act, the Commission's Rules, and the Commission's Orders. The
   Plan will include, at a minimum, the following components:

   (a) Compliance Officer. Custer has designated its Manager as its hearing
   aid compatibility compliance officer. The designated hearing aid
   compatibility compliance officer will be familiar with the FCC's hearing
   aid compatibility regulations. The designated hearing aid compatibility
   compliance officer will also review the FCC's hearing aid compatibility
   regulations on a monthly basis in order to stay abreast of pending
   benchmarks and any new hearing aid compatibility requirements.

   (b) Training. The designated hearing aid compatibility compliance officer
   will be responsible for ensuring that all Custer retail staff receive
   training regarding the hearing aid compatibility capabilities of the
   handsets Custer offers for sale. Such training will be completed within
   ninety days of the Effective Date and any new employees will receive
   training within sixty days of their employment.

   (c) Consumer Outreach. Custer will advertise the availability of hearing
   aid-compatible handsets to ensure that all of its retail customers are
   aware that hearing aid-compatible handsets are available.

   (d) Compliance Reports. Custer will file compliance reports with the
   Commission, ninety (90) days after the Effective Date, twelve (12) months
   after the Effective Date, and twenty-four (24) months after the Effective
   Date. Each report shall include a compliance certificate from the Manager,
   as an agent of Custer, stating that the Manager has personal knowledge
   that Custer has established operating procedures intended to ensure
   compliance with this Consent Decree, together with an accompanying
   statement explaining the basis for the officer's compliance certification.
   All reports shall be submitted to Chief, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission, 445 12th Street,
   S.W., Washington, D.C. 20554. All reports shall also be submitted
   electronically to JoAnn Lucanik at joann.lucanik@fcc.gov and Ava Holly
   Berland at holly.berland@fcc.gov.

   (e) Termination Date. Unless stated otherwise,  the requirements of this
   Consent Decree will expire twenty-four (24) months from the Effective
   Date.

   9. Section 208 Complaints; Subsequent Investigations. 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 Custer 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
   Custer with the Act, the Rules, or the Order.

   10. Voluntary Contribution. Custer agrees that it will make a voluntary
   contribution to the United States Treasury in the amount of twelve
   thousand dollars ($12,000). The payment will be made within thirty (30)
   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 the Account Number and
   FRN Number referenced in the caption to the Adopting Order. Payment by
   check or money order may be mailed to Federal Communications Commission,
   P.O. Box 979088, St. Louis, MO 63197-9000. Payment by overnight mail may
   be sent to U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005
   Convention Plaza, St. Louis, MO 63101. Payment by wire transfer may be
   made to ABA Number 021030004, receiving bank TREAS/NYC, and account number
   27000001. For payment by credit card, an FCC Form 159 (Remittance Advice)
   must be submitted. When completing the FCC Form 159, enter the Account
   number in block number 23A (call sign/other ID), and enter the letters
   "FORF" in block number 24A (payment type code). Custer will also send
   electronic notification on the date said payment is made to JoAnn Lucanik
   at joann.lucanik@fcc.gov and Ava Holly Berland at holly.berland@fcc.gov.

   11. Waivers. Custer 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 Decree and the
   Adopting Order, provided the Bureau issues an Adopting Order adopting the
   Consent Decree without change, addition, modification, or deletion. Custer
   shall retain the right to challenge Commission interpretation of the
   Consent Decree or any terms contained herein. 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 Custer nor the Commission
   shall contest the validity of the Consent Decree or the Adopting Order,
   and Custer shall waive any statutory right to a trial de novo. Custer
   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.

   12. Severability. The Parties agree that if any of the provisions of the
   Adopting Order or the Consent Decree shall be invalid or unenforceable,
   such invalidity or unenforceability shall not invalidate or render
   unenforceable the entire Adopting Order or Consent Decree, but rather the
   entire Adopting Order or Consent Decree shall be construed as if not
   containing the particular invalid or unenforceable provision or
   provisions, and the rights and obligations of the Parties shall be
   construed and enforced accordingly. In the event that this Consent Decree
   in its entirety 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.

   13. Subsequent Rule or Order. The Parties 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 Custer does not expressly consent) that
   provision will be superseded by such Commission rule or Order.

   14. Successors and Assigns. Custer agrees that the provisions of this
   Consent Decree shall be binding on its successors, assigns, and
   transferees.

   15. Final Settlement. The Parties agree and acknowledge that this Consent
   Decree shall constitute a final settlement between the Parties. The
   Parties further 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.

   16. Modifications. This Consent Decree cannot be modified without the
   advance written consent of both Parties.

   17. Paragraph Headings. The headings of the Paragraphs in this Consent
   Decree are inserted for convenience only and are not intended to affect
   the meaning or interpretation of this Consent Decree.

   18. Authorized Representative. Each party represents and warrants to the
   other that it has full power and authority to enter into this Consent
   Decree.

   19. Counterparts. This Consent Decree may be signed in any number of
   counterparts (including by facsimile), each of which, when executed and
   delivered, shall be an original, and all of which counterparts together
   shall constitute one and the same fully executed instrument.


     _______________________________      
                                          
     Sue McNeil                           
                                          
     Deputy Chief                         
                                          
     Enforcement Bureau                   
                                          
     ________________________________     
                                          
     Date                                 
                                          
     ________________________________     
                                          
     Dennis Thornock                      
                                          
     Manager                              
                                          
     Custer Telephone Cooperative, Inc.   
                                          
     1111 Main Street                     
                                          
     Challis, ID 83226                    
                                          
     ________________________________     
                                          
     Date                                 


   47 C.F.R. S: 20.19(d)(2).

   47 U.S.C. S: 154(i).

   47 C.F.R. S:S: 0.111, 0.311.

   47 C.F.R. S: 20.19(d)(2).

   Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, to Custer Telephone Cooperative, Inc. (August 13,
   2007).

   Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, to Custer Telephone Cooperative, Inc. (August 13,
   2007).

   See Letter from Peter M. Connolly, Esq., Holland & Knight LLP to Marlene
   Dortch (August 24, 2007).

   See Letter from Peter M. Connolly, Esq., to JoAnn Lucanik, Esq. and Holly
   Berland, Esq., Spectrum Enforcement Division, Enforcement Bureau (January
   29, 2008).

   Federal Communications Commission DA 08-1157

   2

   Federal Communications Commission DA 08-1157