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Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-08-IH-1544
In the Matter of
) NAL/Acct. No. 200932080043
Telenational Communications, Inc.
) FRN No. 0005044672
)
ORDER
Adopted: May 13, 2009 Released: May 13, 2009
By the Investigations & Hearings Division, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and Telenational
Communications, Inc. ("Telenational"). The Consent Decree terminates
an investigation by the Bureau against Telenational for possible
violation of section 214 of the Communications Act of 1934, as amended
(the "Act"), and relating to extension of lines and transfer of
control, and sections 63.03 and 63.04 of the Commission's rules,
relating to procedures for domestic transfer of control applications
and assignment of section 214 authorizations.
2. The Bureau and Telenational have negotiated the terms of the Consent
Decree that resolve this matter. 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 investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether Telenational 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 Act
and sections 0.111 and 0.311 of the Commission's 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 Christopher J. Canfield, President, Telenational
Communications, Inc., 5408 N. 99th Street, Omaha NE 68134.
FEDERAL COMMUNICATIONS COMMISSION
Hillary S. DeNigro
Chief, Investigations & Hearings Division
Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-08-IH-1544
In the Matter of
) NAL/Acct. No. 200932080043
Telenational Communications, Inc.
) FRN No. 0005044672
)
CONSENT DECREE
The Enforcement Bureau ("Bureau") of the Federal Communications Commission
("Commission" or "FCC") and Telenational Communications, Inc.
("Telenational" or the "Company"), by their authorized representatives,
hereby enter into this Consent Decree for the purpose of terminating the
Bureau's investigation into whether Telenational or iBroadband Networks,
Inc. may have violated section 214 of the Communications Act of 1934, as
amended (the "Act"), relating to extension of lines and transfer of
control, and sections 63.03 and 63.04 of the Commission's rules, relating
to procedures for domestic transfer of control applications and assignment
of section 214 authorizations.
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. "Applicants" means Telenational Communications, Inc. and iBroadband
Networks, Inc.
d. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
e. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
f. "Compliance Plan" means the program described in this Consent Decree
at paragraph 8.
g. "Effective Date" means the date on which the Commission releases the
Adopting Order.
h. "iBroadband Networks, Inc." means iBroadband and its
predecessors-in-interest and successors-in-interest, including
Telenational Communications, Inc.
i. "Investigation" means the investigation commenced by the Bureau's
August 8, 2008, Letter of Inquiry to Chris Canfield, Telenational
Communications, Inc., regarding allegations that Telenational or
iBroadband may have violated section 214 of the Act, 47 U.S.C. S: 214,
and sections 63.03 and 63.04 of the Commission's rules, 47 C.F.R. S:S:
63.03, 64.04 by failing to comply with procedures governing domestic
transfer of control applications and assignment of section 214
authorizations.
j. "Parties" means Telenational Communications, Inc. and the Bureau.
k. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
l. "Telecommunications service" or "Telecommunications" means interstate
telecommunications as defined in sections 3(43) and 3(46) of the Act,
47 U.S.C. S:S: 153(43), 153(46).
m. "Telenational Communications, Inc." means Telenational and its
predecessors-in-interest and successors-in-interest.
II. BACKGROUND
2. Pursuant to Section 214 of the Act, telecommunications carriers must
obtain a certificate of public convenience and necessity from the
Commission before constructing, acquiring, operating, or engaging in
transmission over lines of communications, or before discontinuing,
reducing or impairing service to a community. The Commission granted
all carriers blanket authority under section 214 to provide domestic
interstate services and to construct, acquire, or operate any domestic
transmission line. In accordance with section 63.03 of the
Commission's rules, however, any domestic carrier seeking to transfer
control of lines or authorization to operate pursuant to section 214
of the Act must obtain prior approval from the Commission. Pursuant to
section 63.04 of the Commission's rules, a carrier seeking domestic
section 214 authorization for transfer of control must file an
application containing certain information.
3. Telenational Communications, Inc.is a provider of telecommunications
service in Texas. On May 15, 2008, Telenational and iBroadband
Networks, Inc., d/b/a Cedar Valley Communications, filed an
application, pursuant to sections 63.03, 63.04 and 63.18 of the
Commission's rules, requesting approval to transfer control of
domestic and international section 214 authorizations from iBroadband
to Telenational. While considering the application, staff of the
Commission's Wireline Competition Bureau ("WCB") requested additional
information from Telenational about iBroadband's purchase of the
assets of another telecommunications provider, Cedar Valley
Communications, in 2006. By letter dated June 19, 2008, Telenational
stated that iBroadband had purchased the assets of Cedar Valley
Communications out of bankruptcy and had provided domestic
telecommunications service to Cedar Valley's customers without seeking
or receiving authority from the Commission. WCB granted Telenational's
request for approval to transfer control of the domestic section 214
authorizations from iBroadband to Telenational on July 24, 2008 and
referred for possible enforcement the issue of whether iBroadband
violated section 214 of the Act and sections 63.03 and 63.04 of the
Commission's rules regarding the transfer of control and assignment of
Cedar Valley's section 214 authorizations. Shortly thereafter, the
Bureau issued a Letter of Inquiry ("LOI") to Telenational directing
Telenational to provide additional information about the acquisition
by iBroadband of Cedar Valley Communications assets. Telenational
responded to the LOI on September 2, 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. Telenational 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 FCC 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, Telenational 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 Telenational 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 Telenational
with respect to Telenational's basic qualifications, including its
character qualifications, to be a Commission licensee or hold
Commission authorizations.
8. Compliance Plan. For purposes of settling the matters set forth
herein, Telenational agrees to create within thirty (30) calendar days
from the Effective Date a Compliance Plan related to future compliance
with the Act, the Commission's Rules, and the Commission's Orders. As
part of this Compliance Plan, Telenational will conduct an education
program for company attorneys, managers and other parties responsible
for and involved in the purchase, sale, or acquisition of
telecommunications assets or carriers, regarding the Commission's
rules and requirements applicable to assignments and transfers of
control under section 214 of the Act and the Commission's rules.
Telenational also commits to seek federal regulatory counsel to
ascertain all approvals required for transactions involving transfers
of control or assignments of
9. Compliance Reports. Telenational will file compliance reports with the
Commission twelve (12) months after the Effective Date and twenty-four
(24) months after the Effective Date. Each compliance report shall
include a compliance certificate from an officer, as an agent of
Telenational, stating that the officer has personal knowledge that
Telenational 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 compliance reports shall be submitted to Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Washington, D.C.
20554.
10. Termination Date. Unless stated otherwise, the requirements of this
Consent Decree will expire twenty-four (24) months after the effective
date.
11. Voluntary Contribution. Telenational agrees that it will make a
voluntary contribution to the United States Treasury in the amount of
six thousand dollars ($6,000) 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 Federal Reserve Bank of New York, and account number
27000001. Telenational will also send an electronic notification on
the date payment is made to Trent Harkrader at
Trent.Harkrader@fcc.gov.
12. Waivers. Telenational 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 Commission issues the Adopting
Order without change, addition, modification, or deletion.
Telenational 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
Telenational nor the Commission shall contest the validity of the
Consent Decree or the Adopting Order, and Telenational shall waive any
statutory right to a trial de novo. Telenational 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.
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 Telenational does not expressly
consent) that provision will be superseded by such Commission rule or
Order.
14. Successors and Assigns. Telenational 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. The
Parties agree that this Consent Decree is for settlement purposes only
and that by agreeing to this Consent Decree, Telenational does not
admit or deny any fact, noncompliance, violation, or liability for
violating the Act in connection with the matters that are the subject
of this Consent Decree.
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.
________________________________
Hillary S. DeNigro
Chief, Investigations & Hearings Division
Enforcement Bureau
________________________________
Date
________________________________
Christopher J. Canfield
President
Telenational Communications, Inc.
________________________________
Date
47 U.S.C. S: 310(d).
47 C.F.R. S:S: 63.03, 63.04.
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 U.S.C. S: 214.
47 C.F.R. S:S: 63.03, 63.04.
See 47 U.S.C. S: 214(a).
See Implementation of Section 402(b)(2)(A) of the Telecommunications Act
of 1996; Petition for Forbearance of the Independent Telephone &
Telecommunications Alliance, Report and Order and Second Memorandum
Opinion and Order, 14 FCC Rcd 11364 (1999); 47 C.F.R. S: 63.01.
See Implementation of Further Streamlining Measures for Domestic Section
214 Authorizations, Report and Order, 17 FCC Rcd 5517, 5521, P: 5 (2002);
47 C.F.R. S: 63.03.
47 C.F.R. S: 63.04(a).
See Letter from Trent B. Harkrader, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, FCC to Chris Canfield, President,
Telenational Communications, Inc., dated August 8, 2008 ("LOI").
See Letter from Chris Canfield, President, Telenational Communications,
Inc., to Trent B. Harkrader, Deputy Chief, Investigations and Hearings
Division, Enforcement Bureau, FCC, dated September 2, 2008.
Federal Communications Commission DA 09-1047
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Federal Communications Commission DA 09-1047
Federal Communications Commission DA 09-1047
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Federal Communications Commission DA 09-1047