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Before the
Federal Communications Commission
Washington, D.C. 20554
)
File No. EB-08-IH-1384
In the Matter of )
NAL/Acct. No.
Supra Telecommunications & Information ) 200932080045
Systems, Inc.
) FRN No. 0015-3277-45
)
ORDER
Adopted: May 15, 2009 Released: May 15, 2009
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau (the "Bureau") and Supra
Telecommunications & Information Systems , Inc. f/k/a Supra
Telecommunications & Information Systems Acquisitions Corp. ("Supra").
The Consent Decree terminates the enforcement proceeding initiated by
the Bureau against Supra for possible violations of section 254 of the
Communications Act of 1934, as amended (the "Act"), and section 54.706
of the Commission's rules, relating to universal service.
2. The Bureau and Supra 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 enforcement
proceeding.
4. In the absence of material new evidence relating to this matter, we
conclude that the Bureau's investigation raises no substantial or
material questions of fact as to whether Supra 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 Douglas D. Orvis II, Bingham McCutchen LLP, 2020 K
Street, N.W., Washington, D.C. 20006-1806.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief
Enforcement Burea
Before the
Federal Communications Commission
Washington, D.C. 20554
)
In the Matter of ) File No. EB-08-IH-1384
) NAL/Acct. No. 200932080045
Supra Telecommunications & Information ) FRN No. 0015-3277-45
Systems, Inc. )
CONSENT DECREE
1. The Enforcement Bureau ("Bureau") and Supra Telecommunications &
Information Systems, Inc. ("Supra"), by its authorized representative,
hereby enters into this Consent Decree for the purpose of terminating
the Bureau's investigation concerning Supra's compliance with section
254 of the Communications Act of 1934, as amended (the "Act"), and
section 54.706 of the Commission's rules relating to universal
service.
I. DEFINITIONS
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. "Adopting Order" means an order of the Commission 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. "Supra" means Supra Telecommunications & Information Systems,
Inc. f/k/a Supra Telecommunications & Information Systems
Acquisitions Corp. and its direct parent company (Cleartel
Communications, Inc.) and any wholly or partially owned direct or
indirect subsidiary of Supra Telecommunications & Information
Systems, Inc. or its direct parent company.
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 11.
g. "Effective Date" means the date on which the Commission releases the
Adopting Order.
h. "Investigation" means the investigation commenced by the Bureau's
June 26, 2008 Letter of Inquiry regarding Supra's universal service
contribution obligations.
i. "Parties" means Supra and the Bureau.
j. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
II. BACKGROUND
3. Pursuant to section 254(d) of the Act and section 54.706 of the rules,
telecommunications carriers that provide interstate telecommunications
services are required to contribute to the federal Universal Service
Fund ("USF").
4. Supra offers interstate and international telecommunications services
and is subject to the requirements discussed in paragraph 3 above.
5. On June 26, 2008, the Bureau issued a letter of inquiry to Supra. The
June 26, 2008 LOI directed Supra, among other things, to submit a
sworn written response to a series of questions relating to Supra's
apparent failure to contribute to the USF. Supra responded to the June
26, 2008 LOI on August 11, 2008.
6. On May 11, 2009, Supra informed the Bureau that it had entered into an
asset purchase agreement (the "APA"), whereby Supra will sell
substantially all of its assets and customer base to a third party and
will then no longer operate as a telecommunications carrier or
otherwise offer or provide any regulated services subject to Title II
of the Act.
III. TERMS OF AGREEMENT
7. 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.
8. Jurisdiction. Supra 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.
9. 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.
10. 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, Supra 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 Supra 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 Supra with respect to
Supra's basic qualifications, including its character qualifications,
to be a Commission licensee or authorized common carrier.
11. Compliance Plan. For purposes of settling the matters set forth
herein, Supra agrees to create within sixty (60) days a Compliance
Plan related to Supra's future compliance with the Act, the
Commission's rules, and the Commission's orders governing
telecommunications service providers' federal reporting and
contribution requirements. The Plan will include, at a minimum, the
following components:
a. Compliance Manual. Supra shall create, maintain, and update an
FCC Compliance Manual. Supra personnel who engage in activities
related to FCC regulation of Supra will have ready access to the
Compliance Manual and are to follow the procedures contained
therein. The Compliance Manual will, among other things, describe
the rules and requirements as they apply to Supra regarding the
USF compliance and reporting requirements. The Compliance Manual
will set forth a schedule of filing and payment dates associated
with the USF. The Compliance Manual will encourage personnel to
contact Supra's Designated Contact or internal regulatory legal
counsel, with any questions or concerns that arise with respect
to Supra's FCC compliance. Supra shall submit to the Bureau a
final version of its Compliance Manual sixty (60) days after the
Effective Date.
b. Compliance Training Program. Supra will establish an FCC compliance
training program for any employee who engages in activities related
to FCC regulation of Supra. Training sessions will be conducted at
least annually for such employees to ensure compliance with the Act
and the FCC's regulations and policies and, for new employees who are
engaged in such activities, within the first sixty (60) days of
employment.
c. Designated Contact. Supra will designate one employee as the point of
contact for all FCC compliance matters.
d. Review and Monitoring. Supra 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. Compliance Reports. Supra 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 Compliance Report shall include a compliance
certificate from an officer, as an agent of Supra, stating that the
officer has personal knowledge that Supra 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 & Hearings Division, Enforcement
Bureau, Federal Communications Commission, 445 12th Street, S.W.,
Room 4-C320, Washington, D.C. 20554.
f. Termination. Supra's obligations under this Paragraph shall expire at
the earlier of a) twenty-four (24) months after the Effective Date,
or b) upon notice provided by Supra to the Bureau, that Supra (i) has
ceased operations as a telecommunications carrier and will no longer
offer or provide any regulated services subject to Title II of the
Act, and (ii) is in full compliance with all obligations under this
Consent Decree and all outstanding reporting and contribution
requirements as of the date of the notice. This notice shall be
accompanied by a sworn declaration from an officer of Supra,
certifying that Supra has ceased operations as a telecommunications
carrier and will no longer offer or provide any regulated services
subject to Title II of the Act, and that Supra is in full compliance
with all obligations under this Consent Decree and all outstanding
reporting and contribution requirements. This notice shall be
submitted to Chief, Investigations & Hearings Division, Enforcement
Bureau, Federal Communications Commission, 445 12th Street, S.W.,
Room 4-C320, Washington, D.C. 20554
12. 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 Supra 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 Supra of the Act, the rules, or the
Order.
13. Voluntary Contribution. Supra agrees that it will make a voluntary
contribution to the United States Treasury in the amount of twelve
thousand dollars ($12,000) within seven (7) business 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. Supra will also send electronic notification within
forty-eight (48) hours of the date said payment is made to
Michele.Berlove@fcc.gov.
14. Waivers. Supra 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 an
Adopting Order adopting the Consent Decree without change, addition,
modification, or deletion. Supra 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 Supra nor the Commission shall contest the
validity of the Consent Decree or the Adopting Order, and Supra shall
waive any statutory right to a trial de novo. Supra 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.
15. 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 Supra does not expressly
consent) that provision will be superseded by such Commission rule or
order.
16. 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.
17. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
18. 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.
19. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
20. 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.
Kris Anne Monteith
Chief
Enforcement Bureau
Date
Keith Parsons
Vice President
Supra Telecommunications & Information Systems, Inc.
Date
47 U.S.C. S: 254; 47 C.F.R. S: 54.706.
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 U.S.C. S: 254; 47 C.F.R. S: 54.706.
See Letter from Trent B. Harkrader, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications Commission
to John Patton, CEO, Supra Telecommunications & Information Systems
Acquisitions Corp., issued June 26, 2008 ("June 26, 2008 LOI").
47 U.S.C. S: 254(d); 47 C.F.R. S:S: 54.706, 54.711, 54.713.
See June 26, 2008 LOI.
See Letter from Douglas D. Orvis II, Bingham McCutchen LLP, to Marlene H.
Dortch, Secretary, FCC, Attn: Michele Levy Berlove, Attorney Advisor,
Investigations & Hearings Division, Enforcement Bureau, FCC, dated August
11, 2008 ("LOI Response").
Federal Communications Commission DA 09-1073
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