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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of
) File No. EB-06-TC-3715
AT&T Inc. File No. EB-07-TC-13231
)
Compliance with the Commission's File No. EB-07-IH-4088
)
Rules and Regulations Governing File No. EB-08-TC-1005
Customer )
NAL/Acct. No. 200932080017
Proprietary Network Information and )
Universal Service Fund Line-Item FRN: 0005193701
Charges )
)
)
ORDER
Adopted: January 9, 2009 Released: January 13, 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 AT&T, Inc., on
behalf of its affiliates (collectively "AT&T" or "the AT&T
Companies"). The Consent Decree terminates the enforcement proceedings
initiated by the Enforcement Bureau against the AT&T Companies for
possible violation of section 222(c)(1) of the Communications Act of
1934, as amended ("Act"), and sections 64.2007, 64.2008(a),
64.2008(d)(3)(ii), 64.2008(d)(3)(v) and 64.2009(a) of the Federal
Communication Commission's ("Commission") rules relating to the
confidentiality of customer proprietary network information, and
sections 201(b) and 254 of the Act, and sections 54.712(a), 69.131 and
69.158 of the Commission's rules relating to the recovery of universal
service fund contributions from end-user customers.
2. The Bureau and the AT&T Companies 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 investigations.
4. In the absence of material new evidence relating to this matter, we
conclude that the Bureau's investigations raise no substantial or
material questions of fact as to whether the AT&T Companies possess
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 investigations ARE
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 Cathy Carpino, General Attorney, AT&T Services Inc.,
1120 20th Street, N.W., Suite 1000, Washington, D.C. 20036.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of
) File No. EB-06-TC-3715 File
AT&T Inc. No. EB-07-TC-13231
)
Compliance with the Commission's File No. EB-07-IH-4088
)
Rules and Regulations Governing File No. EB-08-TC-1005
Customer )
NAL/Acct. No. 200932080017
Proprietary Network Information and )
Universal Service Fund Line-Item FRN: 0005193701
Charges )
)
)
CONSENT DECREE
I. INTRODUCTION
1. The Enforcement Bureau ("the Bureau") of the Federal Communications
Commission (the "Commission" or "FCC") and AT&T Inc. on behalf of its
affiliates (collectively "AT&T" or "the AT&T Companies"), by their
authorized representative, hereby enter into this Consent Decree for the
purpose of terminating Bureau investigations into whether the AT&T
Companies violated section 222(c)(1) of the Communications Act of 1934, as
amended (the Act") and sections 64.2007, 64.2008(a), 64.2008(d)(3)(ii),
64.2008(d)(3)(v) and 64.2009(a) of the Commission's rules relating to the
confidentiality of customer proprietary network information and whether
the AT&T Companies hereby violated sections 201(b) and 254 of the Act, and
sections 54.712(a), 69.131 and 69.158 of the Commission's rules relating
to the recovery of universal service fund contributions from end-user
customers.
II. 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. "AT&T" or "The AT&T Companies" means AT&T Inc., AT&T Connecticut
(formerly known as The Woodbury Telephone Company), AT&T Corp., AT&T
Mobility, LLC (formerly known as Cingular Wireless and/or AT&T
Wireless), BellSouth Telecommunications, Inc., Illinois Bell Telephone
Company, Indiana Bell Telephone Company, Inc., Michigan Bell Telephone
Company, The Ohio Bell Telephone Company, Wisconsin Bell Telephone
Company, SBC Long Distance, LLC, Southwestern Bell Telephone Company,
Pacific Bell Telephone Company, Nevada Bell Telephone Company and SNET
America, Inc. and their predecessors-in-interest and
successors-in-interest.
d. "AT&T Investigation (EB-07-IH-4088)" means the investigation commenced
by the Bureau's March 13, 2007 Letter of Inquiry and Supplemental
Letters of Inquiry.
e. "AT&T Investigation (EB-07-TC-13231)" means the investigation
commenced by the Bureau's August 14, 2007 Letter of Inquiry to AT&T.
f. AT&T Investigation (EB-08-TC-1005)" means the investigation commenced
by the Bureau's January 31, 2008 Letter of Inquiry to AT&T.
g. "BellSouth Investigation (EB-06-TC-3715)" means the investigation
commenced by the Bureau's November 22, 2006 Letter of Inquiry to
BellSouth.
h. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
i. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
j. "Compliance Plan" means the program described in this Consent Decree
at paragraph 11.
k. "Effective Date" means the date on which the Commission releases the
Adopting Order.
l. "Parties" means the AT&T Companies and the Commission.
m. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
III. BACKGROUND
CPNI Investigations
3. Section 222 imposes the general duty on all telecommunications carriers
to protect the confidentiality of their subscribers' proprietary
information. The Commission has issued rules implementing section 222 of
the Act. Approval is required before a telecommunications carrier may use,
disclose, or permit access to its customers' individually identifiable
CPNI. Prior to soliciting such approval, however, carriers must provide
customers with notice informing them of their right to restrict the use
of, disclosure of, and access to their CPNI. Opt-out approval means that
"a customer is deemed to have consented to the use, disclosure, or access
to the customer's CPNI if the customer has failed to object thereto within
the waiting period described in S: 64.2009(d)(1) after the customer is
provided appropriate notification of the carrier's request." If a carrier
is using e-mail to provide "opt-out" notices, as is the case here, it must
allow customers the ability to reply directly to those e-mails in order to
opt-out. Carriers are obligated to implement a system to track customers'
CPNI approval before using CPNI.
4. BellSouth Investigation (EB-07-TC-3715): On July 28, 2006, BellSouth
Telecommunications, Inc. ("BellSouth") filed with the Commission, a Third
Supplemental Response to the Enforcement Bureau's Letter of Inquiry
("LOI") dated January 27, 2006, reporting failures in its CPNI opt-out
mechanism that resulted in the unauthorized use of certain customers' CPNI
in its marketing campaigns. The affected customers included those who had
elected to restrict the use of their CPNI using a means other than by
calling the prescribed 800 number as instructed in the CPNI opt-out notice
(i.e. by calling the Bellsouth business office or by opting out when they
signed up for service). Also included were new customers whose accounts
should have been noted as CPNI restricted until BellSouth's 75-day opt-out
period had expired. On November 22, 2006, the Bureau sent an LOI to
BellSouth requesting further information regarding the CPNI opt-out
failures. BellSouth provided its response to the LOI on December 8, 15,
and 19, 2006.
5. AT&T Investigation (EB-07-TC-13231): On July 9, 2007, AT&T reported
that certain new, local service customers in its southwest region were
sent CPNI notices electronically via e-Confirmations, but were not
provided with the ability to reply electronically to the notices in order
to opt-out. On August 6, 2007, AT&T submitted its annual Compliance Report
in accordance with the terms of the July 7, 2006 Consent Decree executed
between the Commission and AT&T. The Compliance Report detailed a similar
inability by some new customers in AT&T Midwest's region to reply
electronically to the CPNI notices received in the e-Confirmations.
Additionally, some new customers in AT&T's western region did not receive
the necessary link in their e-Confirmation notices, which would have
directed them to the CPNI notice page. On August 14, 2007, the Bureau sent
an LOI to AT&T requesting further information regarding these issues. AT&T
provided its response to the LOI on September 13, 2007.
6. AT&T Investigation (EB-08-TC-1005): On January 18, 2008, AT&T reported
another failure in its CPNI opt-out mechanism in its west and southwestern
regions. AT&T directed these customers to call a toll-free number to opt
out through its CPNI Interactive Voice Response ("IVR") application.
However, because AT&T migrated the IVR application associated with that
number to a different server, between December 7, 2007 and January 10,
2008, customers dialing the toll-free number to opt out could not get
through, but instead received a busy signal. On January 31, 2008, the
Bureau sent an LOI to AT&T requesting further information regarding this
matter. AT&T provided its response to the LOI on February 21, 2008.
Universal Service Investigation
7. The Commission's rules require that entities providing interstate
telecommunications services and certain other providers of interstate
telecommunications contribute to the federal universal service fund
("USF") based upon their interstate and international end-user
telecommunications revenues. The Commission does not require contributors
to recover their universal service contributions from their customers.
Instead, the Commission allows contributors to recover their universal
service contributions from their customers, subject to certain
requirements. Specifically, section 54.712 of the Commission's rules
provides that contribution costs passed through to end-user customers as
federal universal service line-item charges may not exceed the interstate
telecommunications portion of the customers' bills multiplied by the
relevant contribution factor. In addition, section 201(b) requires that
all carrier charges, practices, classifications, and regulations "for and
in connection with" interstate communications services be just and
reasonable, and gives the Commission jurisdiction to enact rules to
implement that requirement.
8. Sections 69.131 and 69.158 of the Commission's rules also prohibit
certain types of contributors from recovering universal service
contribution costs from customers participating in the Lifeline program,
whereby qualifying low-income consumers may receive telecommunications
service at reduced charges. The Commission has determined that
prohibiting recovery of universal service contributions from Lifeline
customers helps to increase subscribership by reducing qualifying
low-income consumers' monthly basic local service charges, consistent with
the universal service goals of the Act and the Commission's rules.
9. AT&T Inc. is the holding company of various telecommunications
companies, including the AT&T Companies, providing service in the United
States. The AT&T Companies offer interstate telecommunications services
and are subject to the requirements discussed in paragraphs 7 and 8 above.
10. On February 2, 2007, the AT&T Companies voluntarily disclosed that one
of the AT&T Companies had apparently recovered federal USF contribution
costs from end-user customers in excess of the amounts permitted under
section 54.712 of the Commission's rules. On March 13, 2007, the Bureau
initiated an investigation into whether the AT&T Companies may have
violated the Commission's rules governing the recovery of universal
service contributions. During the course of the investigation, AT&T
discovered and revealed that, at various times between 2002 and 2008,
other AT&T Companies also recovered their USF contributions in amounts
greater than allowed under the Commission's rules, including the recovery
of contributions from Lifeline customers. The AT&T Companies assert that
such recoveries were inadvertent and were the result of billing errors.
The AT&T Companies have refunded to existing customers the money collected
from them in excess of that permitted under Commission rules; however, the
AT&T Companies have not provided refunds to certain of their former
customers, according to the AT&T Companies, because of the cost and
difficulty of locating those customers and administering refunds, given
the small amounts owed to each of them.
IV. TERMS OF AGREEMENT
11. 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.
12. Jurisdiction. The AT&T Companies agree that the Commission has
jurisdiction over them and the matters contained in this Consent Decree
and has the authority to enter into and adopt this Consent Decree.
13. 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 Commission.
Any violation of the Adopting Order or of the terms of this Consent Decree
shall constitute a separate violation of a Commission Order, entitling
the Commission to exercise any rights and remedies attendant to the
enforcement of a Commission Order.
14. Termination of Investigations. 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
investigations. The Parties further agree that this Consent Decree
reflects a compromise and was entered into by AT&T to avoid further cost
and inconvenience of the investigations. In consideration for the
termination of said investigations, the AT&T Companies agree 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 the investigations 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 the AT&T Companies concerning the matters that
were the subject of the investigations. 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 the AT&T Companies with
respect to the AT&T Companies' basic qualifications, including their
character qualifications, to be a Commission licensee or authorized common
carrier or hold Commission authorizations.
15. Compliance Plans. The AT&T Companies agree that they will develop,
within sixty (60) calendar days from the Effective Date, internal
Compliance Plans, consistent with the requirements set forth below, to
help ensure the AT&T Companies' future compliance with the Act, the
Commission's rules, and the Commission's orders governing
telecommunications carriers' recovery of universal service contributions
from end-user customers and confidentiality of customer proprietary
network information. Those Compliance Plans shall remain in effect for the
period specified below and shall thereafter automatically sunset.
a. BellSouth Investigation (EB-06-TC-3715) Compliance Plan:
a. This Compliance Plan shall be applicable to BellSouth.
b. AT&T agrees that prior to changing the update mechanism for CPNI
opt-out indicator updates, it shall identify applicable work groups
involved in the current and planned update method, verify that the
mechanism ensures that the CPNI status indicator for each customer is
appropriately updated in system, and verify that the mechanism
ensures that for a 30-day minimum period of time after giving notice
and an opportunity to opt-out, new customers will be excluded from
marketing lists where CPNI approval is required.
c. AT&T shall report any non-compliance with this Compliance Plan to the
Enforcement Bureau within 30 days after the discovery of
non-compliance.
d. This Compliance Plan shall remain in effect for two years.
e. AT&T will certify at the end of the two (2) year term that it is in
compliance with the terms of the Plan. Such certification must be
mailed within fifteen (15) days after the two-year anniversary of the
Effective Date of this Consent Decree.
b. AT&T Investigation (EB-07-TC-13231) Compliance Plan:
a. This Compliance Plan shall be applicable to Southwestern Bell
Telephone Company, Pacific Bell Telephone Company, Nevada Bell
Telephone Company, Illinois Bell Telephone Company, Indiana Bell
Telephone Company, Michigan Bell Telephone Company, The Ohio Bell
Telephone Company, and Wisconsin Bell, Inc.
b. Designation of CPNI Expert: AT&T shall designate an internal CPNI
subject matter expert whose work activities shall focus on CPNI
issues and who shall develop CPNI opt-out notices. This CPNI expert
shall be used as a resource on CPNI questions within the company.
c. Establishment of CPNI Compliance Oversight Committee: AT&T shall
establish a CPNI Compliance Oversight Committee, who shall review the
status of, and open issues regarding, CPNI projects that are in
progress.
d. Reminder Notices to Comply with Plan: AT&T shall distribute an annual
officer-level communication to its internal marketing organizations
responsible for managing distribution of CPNI opt-out notices
reinforcing their obligation to comply with the provisions of the
Plan.
e. Training: AT&T shall provide annual training to employees of its
internal marketing organizations responsible for managing the
distribution of CPNI opt-out notices. This training will focus on
federal CPNI opt-out requirements and the terms of this Plan.
f. AT&T shall report any non-compliance with this Compliance Plan to the
Enforcement Bureau within 30 days after the discovery of
non-compliance.
g. This Compliance Plan shall remain in effect for two years.
h. AT&T will certify at the end of the two (2) year term that it is in
compliance with the terms of the Plan. Such certification must be
mailed within fifteen (15) days after the two-year anniversary of the
Effective Date of this Consent Decree.
c. AT&T Investigation (EB-08-TC-1005) Compliance Plan:
a. This Compliance Plan shall be applicable to Southwestern Bell
Telephone Company, Pacific Bell Telephone Company, and Nevada Bell
Telephone Company.
b. AT&T agrees that prior to migrating an Interactive Voice Response
application used for CPNI opt-out, it shall identify and notify
applicable work groups involved in the current and planned migration
and perform the necessary validation tests to ensure the successful
connection of the migrated switch to the new server.
c. AT&T shall report any non-compliance with this Compliance Plan to the
Enforcement Bureau within 30 days after the discovery of
non-compliance.
d. This Compliance Plan shall remain in effect for two years.
e. AT&T will certify at the end of the two (2) year term that it is in
compliance with the terms of the Plan. Such certification must be
mailed within fifteen (15) days after the two-year anniversary of the
Effective Date of this Consent Decree.
d. AT&T Investigation (EB-07-IH-4088) Compliance Plan:
a. This Compliance Plan shall be applicable to the AT&T Companies.
b. Compliance Training Program. The AT&T Companies will establish and
maintain a federal USF ("FUSF") compliance training program for
employees who are directly responsible for aspects of billing the
FUSF charge. This training program shall address FCC's regulations
governing FUSF charge requirements, and the application of those
requirements to the services provided by the AT&T Companies and the
potential ramifications of failing to comply with the charge
requirements. 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. AT&T
shall update and enhance the foregoing training as appropriate and
necessary.
c. Internal Controls Over Billing the FUSF Charge. AT&T has established,
and shall maintain, internal control processes designed to ensure
accurate billing of the FUSF charge.
i. AT&T has established procedures for determining the applicability
of the FUSF charge to new services, including volume and/or term
discount.
ii. AT&T has established, and shall maintain, an FUSF oversight team
that will serve as a resource for resolving questions related to
AT&T compliance with applicable FUSF charge rules and act as a
central point of contact for FUSF charge requirements throughout
the company. The oversight team will also oversee the
development and dissemination of training material and will
monitor changes in FUSF rules to make sure those changes are
documented and disseminated appropriately. The oversight team
includes representatives of the AT&T legal department and the
AT&T corporate compliance department.
d. AT&T shall report any non-compliance with this Compliance Plan to the
Enforcement Bureau within 30 days after the discovery of
non-compliance.
e. This Compliance Plan shall remain in effect for two years.
f. AT&T will file a compliance report with the Commission twenty-four
(24) months after the Effective Date. The compliance report shall
include a compliance certificate from an officer, as an agent of the
AT&T Companies, stating that the officer has personal knowledge that
AT&T 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.
16. Compliance Reporting. All compliance reports and certifications shall
be submitted to the Chief, Telecommunications Consumers Division,
Enforcement Bureau, Federal Communications Commission, 445 12th Street,
S.W., Washington, D.C. 20554 and the Chief, Investigations and Hearings
Division, Enforcement Bureau, Federal Communications Commission, 445 12th
Street, S.W., Washington, D.C. 20554.
17. Termination Date. Unless stated otherwise, the requirements of this
Consent Decree will expire twenty-four (24) months after the Effective
Date or, with respect to those requirements pertaining to the resolution
of the CPNI investigations (AT&T Investigation (EB-07-TC-13231), AT&T
Investigation (EB-08-TC-1005) and BellSouth Investigation
(EB-06-TC-3715)), upon the termination of the opt-out requirements set
forth in sections 64.2001-2009 of the Commission's rules, 47 C.F.R. S:S:
64.2001-2009, whichever is earlier.
18. 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 the AT&T Companies or their 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 the AT&T Companies of the Act, the rules, or the Adopting
Order.
19. Voluntary Contribution. The AT&T Companies agree that they will make a
voluntary contribution to the United States Treasury in the amount of ten
million eighty thousand six hundred dollars ($10,080,600) within thirty
(30) days after the Effective Date. The AT&T Companies have already
refunded overcharges directly to existing customers. The voluntary
contribution includes, among other amounts, certain overcharges that the
AT&T Companies assert they were unable to refund to certain of their
former customers. AT&T asserts that it would not be cost-effective to
pursue additional direct refunds, because the small amount at issue
relating to each individual former customer (e.g., $0.72 per former
subscriber) would be far less than the cost of locating these former
customers and administering further refunds. AT&T therefore asserts that
it is more appropriate for the AT&T Companies instead to remit these
amounts to the United States Treasury. 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. Payments by wire transfer may be made to ABA
Number 021030004, receiving bank Federal Reserve Bank of New York, and
account number 27000001. The AT&T Companies will also send electronic
notification on the date said payment is made to Johnny Drake at
Johnny.Drake@fcc.gov and to Michele Levy Berlove at
Michele.Berlove@fcc.gov.
20. Waivers. The AT&T Companies waive any and all rights they 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 Order adopting this Consent Decree, provided the Commission issues
an Order adopting the Consent Decree without change, addition,
modification, or deletion. The AT&T Companies 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 the AT&T Companies nor the Commission shall contest the
validity of the Consent Decree or the Adopting Order, and the AT&T
Companies shall waive any statutory right to a trial de novo. The AT&T
Companies hereby agree to waive any claims they 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.
21. 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 the AT&T Companies do not expressly
consent) that provision will be superseded by such Commission rule or
Order.
22. Successors and Assigns. The AT&T Companies agree that the provisions
of this Consent Decree shall be binding on their successors, assigns, and
transferees.
23. 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 admission of liability, an admission of noncompliance, 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.
24. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
25. 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.
26. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
27. 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 A. Monteith
Chief, Enforcement Bureau
Federal Communications Commission
________________________________
Date
________________________________
Paul Mancini
Senior VP & Assistant General Counsel
AT&T Inc., on behalf of the AT&T Companies
________________________________
Date
"AT&T" or "The AT&T Companies" means AT&T Inc., AT&T Connecticut (formerly
known as The Woodbury Telephone Company), AT&T Corp., AT&T Mobility, LLC
(formerly known as Cingular Wireless and/or AT&T Wireless), BellSouth
Telecommunications, Inc., Illinois Bell Telephone Company, Indiana Bell
Telephone Company, Inc., Michigan Bell Telephone Company, The Ohio Bell
Telephone Company, Wisconsin Bell Telephone Company, SBC Long Distance,
LLC, Southwestern Bell Telephone Company, Pacific Bell Telephone Company,
Nevada Bell Telephone Company and SNET America, Inc. and their
predecessors-in-interest and successors-in-interest.
47 U.S.C. S: 222(c)(1).
47 C.F.R. S:S: 64.2007, 64.2008(a), 64.2008(d)(3)(ii), 64.2008(d)(3)(v)
and 64.2009(a).
47 U.S.C. S:S: 201(b) and 254.
47 C.F.R. S:S: 54.712(a), 69.131 and 69.158.
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 U.S.C. S: 222(c)(1).
47 C.F.R. S:S: 64.2007, 64.2008(a), 64.2008(d)(3)(ii), 64.2008(d)(3)(v)
and 64.2009(a).
47 U.S.C. S:S: 201(b) and 254.
47 C.F.R. S:S: 54.712(a), 69.131 and 69.158.
See Letter from Trent B. Harkrader, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, FCC, dated March 13, 2007 ("March
13, 2007 LOI" or "LOI").
See Letters from Hillary DeNigro, Chief, Investigations & Hearings
Division, Enforcement Bureau, FCC, to Mary Henze, Assistant Vice President
Federal Regulatory, AT&T Inc. and Cathy Carpino, Senior Counsel, AT&T
Services Inc., dated September 13, 2007 and October 30, 2007
("Supplemental LOI" and "Second Supplemental LOI," respectively).
47 U.S.C S: 222(a).
In the Matter of Implementation of the Telecommunications Act of 1996:
Telecommunications Carriers' Use of Customer Proprietary Network
Information and Other Customer Information and Implementation of the
Non-Accounting Safeguards of Sections 271 and 272 of the Communications
Act of 1934, as amended, CC Docket Nos. 96-115 and 96-149, FCC 98-27,
Order and Further Notice of Proposed Rulemaking, 13 FCC Rcd 8061 (1998)
("CPNI Order"); see also, In the Matter of Implementation of The
Telecommunications Act of 1996 Telecommunications Carriers' Use of
Customer Proprietary Network Information and Other Customer Information,
Implementation of the Non-Accounting Safeguards of Sections 271 and 272 of
the Communications Act of 1934,as amended, Order on Reconsideration and
Petitions for Forbearance, 14 FCC Rcd 14409 (1999); In The Matter of
Implementation of the Telecommunications Act of 1996:Telecommunications
Carriers' Use of Customer Proprietary Network Information and Other
Customer Information, Implementation of the Non-Accounting Safeguards of
Sections 271 and 272 of the Communications Act of 1934, as amended,
Biennial Regulatory Review -- Review of Policies and Rules Concerning
Unauthorized Changes of Consumers' Long Distance Carriers, Third Report
and Order and Third Further Notice of Proposed Rulemaking, 17 FCC Rcd
14860 (2002).
47 C.F.R. S: 64.2007; see also 47 U.S.C. S: 222(c)(1); except that
carriers may "use, disclose, or permit access to CPNI for the purpose of
providing or marketing service offerings among the categories of service
(i.e., local, interexchange, and CMRS) to which the customer already
subscribes from the same carrier, without customer approval." 47 C.F.R. S:
64.2005(a).
47 C.F.R. S: 64.2008(a).
47 C.F.R. S: 64.2003(i).
47 C.F.R. S: 64.2008(d)(3)(ii).
47 C.F.R. S: 64.2009(a).
See Letter from Colleen Heitkamp, Chief, Telecommunications Consumers
Division, Enforcement Bureau, to Michelle Thomas, AT&T Inc. (EB File No.
EB-06-TC-049, January 27, 2006). On December 29, 2006, subsequent to the
initiation of this investigation, the Commission approved the merger
between AT&T and Bellsouth. Accordingly, we will hereafter refer to the
Company as Bellsouth for matters concerning the Bureau's investigation and
AT&T for any agreements contained herein between the Company and the
Commission.
See Letter from Bennett L. Ross, General Counsel - DC, BellSouth
Corporation, to Colleen Heitkamp, Chief, Telecommunications Consumers
Division, Enforcement Bureau ("July 28, 2006 Opt-Out Failure Notice").
Id.
See Letter of Inquiry from Marcy Greene, Deputy Division Chief,
Telecommunications Consumers Division, Enforcement Bureau, to Bennett L.
Ross, General Counsel - DC, BellSouth Corporation (November 22, 2006).
See Letters from Bennett L. Ross, General Counsel - DC, BellSouth
Corporation to Colleen Heitkamp, Chief, Telecommunications Consumers
Division, Enforcement Bureau (December 8, 2006) (December 15, 2006) and
(December 19, 2006).
See Notification Under Section 64.2009(f), CC Docket No. 96-115, Letter
from Davida Grant, Senior Attorney, AT&T Inc., to Christi Shewman, Chief,
Competition Policy Division, Wireline Competition Bureau, and Erica
McMahon, Chief, Consumer Policy Division, Consumer & Governmental Affairs
Bureau, Federal Communications Commission ("July 9, 2007 Opt-Out Failure
Notice").
See Annual CPNI Compliance Report, File Nos. EB-05-TC-047 and
EB-06-TC-059, Letter from Davida Grant, Senior Attorney, AT&T Inc., to
Colleen Heitkamp, Chief, Telecommunications Consumers Division,
Enforcement Bureau, Federal Communications Commission (August 6, 2007)
("Compliance Report").
In the Matter of AT&T Inc., Compliance with the Commission's Rules and
Regulations Governing Customer Proprietary Network Information, Order, 21
FCC Rcd 7732 (2006) ("July 7, 2006 Consent Decree").
Compliance Report at 6.
Id. at 5.
See Letter of Inquiry from Marcy Greene, Deputy Division Chief,
Telecommunications Consumers Division, Enforcement Bureau, to Jackie
Flemming, Executive Director, Federal Regulatory, AT&T Inc. (August 14,
2007).
See Letter from Davida Grant, Senior Attorney, AT&T Inc., to Colleen
Heitkamp, Chief, Telecommunications Consumers Division, Enforcement Bureau
(September 13, 2007).
See Notification Under Section 64.2009(f), CC Docket No. 96-115, Letter
from Davida Grant, Senior Attorney, AT&T Inc., to Christi Shewman, Chief,
Competition Policy Division, Wireline Competition Bureau, and Erica
McMahon, Chief, Consumer Policy Division, Consumer & Governmental Affairs
Bureau, Federal Communications Commission ("January 18, 2008 Opt-Out
Failure Notice").
Id.
Id.
See Letter of Inquiry from Marcy Greene, Deputy Division Chief,
Telecommunications Consumers Division, Enforcement Bureau, to Davida
Grant, Senior Attorney, AT&T Inc. (January 31, 2008).
See Letter from Davida Grant, Senior Attorney, AT&T Inc., to Colleen
Heitkamp, Chief, Telecommunications Consumers Division, Enforcement Bureau
(February 21, 2008).
See generally 47 C.F.R. S:S: 54.706 - 54.713 (outlining requirements for
contributions to the federal universal service support mechanisms). See
also Federal-State Joint Board on Universal Service, 1998 Biennial
Regulatory Review - Streamlined Contributor Reporting Requirements
Associated with Administration of Telecommunications Relay Services, 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, Report and Order and Second Further
Notice of Proposed Rulemaking, 17 FCC Rcd 24952 (2002) ("Interim
Contribution Order").
See Federal-State Board on Universal Service, Report and Order, 12 FCC Rcd
8776, 9210-11, para. 853 (1997) (subsequent history omitted) ("Universal
Service Order").
Id.
47 C.F.R. S: 54.712.
47 U.S.C. S: 201(b).
47 U.S.C. 254(b); 47 C.F.R. S:S: 69.131, 69.158.
47 C.F.R. S:S: 54.400 et seq.
Interim Contribution Order, 17 FCC Rcd at 24982, para. 62.
See LOI.
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