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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                        )                                
                                                                         
                                        )   File No. EB-06-TC 4500       
     In the Matter of                                                    
                                        )   NAL/Acct. No. 20073217 0038  
     Shoreham Telephone Company, Inc.                                    
                                        )   FRN No. 0004380200           
                                                                         
                                        )                                


                                     ORDER

   Adopted: May 27, 2010 Released: May 28, 2010

   By the Chief, Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau ("Bureau") of the Federal
       Communications Commission ("FCC" or "Commission") and Shoreham
       Telephone Company, Inc. ("Shoreham"). The Consent Decree terminates an
       investigation and Notice of Apparent Liability for Forfeiture ("NAL")
       by the Bureau against Shoreham for possible violation of section 222
       of the Communications Act of 1934, as amended ("Communications Act" or
       "Act"), 47 U.S.C. S: 222, and section 64.2009(e) of the Commission's
       rules, 47 C.F.R. S: 64.2009(e), regarding Shoreham's apparent failure
       to file a compliant annual customer proprietary network information
       ("CPNI") certification pursuant to 64.2009(e).

    2. The Bureau and Shoreham 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, terminating the investigation and
       cancelling the NAL.

    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 Shoreham 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 sections 4(i) and 503(b)
       of the Communications Act of 1934, as amended, 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 and the Notice of Apparent Liability for Forfeiture IS
       CANCELLED.

   FEDERAL COMMUNICATIONS COMMISSION

   P. Michele Ellison

   Chief, Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                        )                                
                                                                         
                                        )   File No. EB-06-TC-4500       
     In the Matter of                                                    
                                        )   NAL/Acct. No. 20073217 0038  
     Shoreham Telephone Company, Inc.                                    
                                        )   FRN No. 0004380200           
                                                                         
                                        )                                


                                 CONSENT DECREE

    1. The Enforcement Bureau ("Bureau") and Shoreham Telephone Company, Inc.
       ("Shoreham" or the "Company"), by their authorized representatives,
       hereby enter into this Consent Decree for the purpose of terminating
       the Enforcement Bureau's investigation into Shoreham's possible
       noncompliance with the requirements of section 222 of the
       Communications Act of 1934, as amended ("Communications Act" or
       "Act"), 47 U.S.C. S: 222, and section 64.2009(e) of the Commission's
       rules, 47 C.F.R. S: 64.2009(e).

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

    e. "Compliance Plan" means the program described in this Consent Decree
       at paragraph 10.

    f. "Effective Date" means the date on which the Commission releases the
       Adopting Order.

    g. "Investigation" means the investigation commenced by the Bureau's
       December 6, 2006, letter of inquiry regarding whether Shoreham
       violated the requirements of section 222 of the Communications Act and
       section 64.2009(e) of the Commission's rules by failing to maintain a
       compliant customer proprietary network information ("CPNI")
       certification.

    h. "Shoreham" means Shoreham Telephone Company, Inc. and its
       predecessors-in-interest and successors-in-interest.

    i. "NAL" means Notice of Apparent Liability for Forfeiture.

    j. "Parties" means Shoreham and the Bureau.

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

   II. BACKGROUND

   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. The Commission required carriers to establish and maintain a
   system designed to ensure that carriers adequately protected their
   subscribers' CPNI. Section 64.2009(e) is one such requirement. Pursuant to
   section 64.2009(e):

   A telecommunications carrier must have an officer, as an agent of the
   carrier, sign a compliance certificate on an annual basis stating that the
   officer has personal knowledge that the company has established operating
   procedures that are adequate to ensure compliance with the rules in this
   subpart. The carrier must provide a statement accompanying the certificate
   explaining how its operating procedures ensure that it is or is not in
   compliance with the rules in this subpart.

   4. The Bureau has been investigating the adequacy of procedures
   implemented by telecommunications carriers to ensure confidentiality of
   their subscribers' CPNI, based on concerns regarding the apparent
   availability to third parties of sensitive, personal subscriber
   information. For example, some companies, known as "data brokers," have
   advertised the availability of records of wireless subscribers' incoming
   and outgoing telephone calls for a fee. Data brokers have also advertised
   the availability of call information that relates to certain landline toll
   calls.

    1. As part of its inquiry into these issues, the Bureau sent a LOI to
       Shoreham on December 6, 2006, directing it to produce the compliance
       certificates for the previous five (5) years that it had prepared
       pursuant to section 64.2009(e) of the Commission's rules. On December
       7, 2006, Shoreham submitted a document in response to the Bureau's
       LOI. The Bureau concluded that the document submitted by Shoreham did
       not satisfy the requirements set forth in the rule and that Shoreham
       had apparently failed to comply with the requirement that it provide a
       statement accompanying its CPNI certificate, explaining how its
       operating procedures ensure compliance with the CPNI rules. Finally,
       the Bureau concluded that Shoreham failed to provide any compliance
       certificates for the years preceding the most recent one, executed
       February 3, 2006. Accordingly, on March 29, 2007, the Bureau released
       an NAL against Shoreham proposing a monetary forfeiture of $100,000
       for its apparent failure to comply with section 64.2009(e) of the
       Commission's rules, and ordered the Company 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. Shoreham filed its response to the NAL on April 30, 2007.

   III. TERMS OF AGREEMENT

    3. 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.

    4. Jurisdiction. Shoreham 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.

    5. 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 Bureau Order.

    6. 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 and to cancel the NAL. In consideration for the
       termination of said investigation and cancellation of the NAL,
       Shoreham 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 Shoreham 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 Shoreham with respect to
       Shoreham's basic qualifications, including its character
       qualifications, to be a Commission licensee or authorized common
       carrier or hold Commission authorizations.

    7. Compliance Plan. For purposes of settling the matters set forth herein
       and to help ensure compliance with the Commission's CPNI rules,
       Shoreham agrees to take all measures necessary to achieve full
       compliance with Section 64.2009(e) of the Commission's rules. Shoreham
       agrees to train its personnel as to when they are and are not
       authorized to use CPNI.  Shoreham further agrees to have an express
       disciplinary process in place for the unauthorized use of CPNI.
       Additionally, Shoreham agrees to send a copy, either electronically or
       by regular mail, of its annual 64.2009(e) compliance certificate for
       each of two years following the effective date of this Consent Decree
       to the Chief, Telecommunications Consumers Division, Enforcement
       Bureau, Federal Communications Commission, 445 12th Street, S.W. Room
       4-C244, Washington, D.C., 20554, and must include the file number
       listed above. Shoreham will also send an electronic copy of its
       certification to other Telecommunications Consumers Division staff as
       directed by the Bureau Chief. This Consent Decree will expire two (2)
       years after the Effective Date or upon the termination of the
       certification requirement set forth in sections 64.2009(e) of the
       Commission's rules, 47 C.F.R. S: 64.2009(e), whichever is earlier.

    8. 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 Shoreham 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 Shoreham of the Act, the rules, or the
       Order.

    9. Voluntary Contribution. Shoreham  agrees that it will make a voluntary
       contribution to the United States Treasury in the amount of five
       thousand dollars ($5,000). The contribution will be made within 30
       calendar 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 NAL/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 NAL/Account number in block number 23A (call sign/other ID), and
       enter the letters "FORF" in block number 24A (payment type code).
       Shoreham will also send electronic notification on the date said
       payment is made to Johnny.drake@fcc.gov.

   10. Waivers. Shoreham 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. Shoreham 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 Shoreham nor the Commission shall contest the
       validity of the Consent Decree or the Adopting Order, and Shoreham
       shall waive any statutory right to a trial de novo. Shoreham 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.

   11. 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.

   12. 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 Shoreham does not expressly
       consent) that provision will be superseded by such Commission rule or
       Order.

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

   14. 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.

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

   16. 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.

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

   18. 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                 
                                        
     ________________________________   
                                        
     Date                               
                                        
     ________________________________   
                                        
     Donald Arnold                      
                                        
     President                          
                                        
     Shoreham Telephone Company, Inc.   
                                        
     ________________________________   
                                        
     Date                               


   47 U.S.C. S: 154(i), 503(b).

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

   See Letter from Marcy Greene, Deputy Division Chief, Telecommunications
   Consumers Division, Enforcement Bureau, Federal Communications Commission,
   to Mr. James C. Arnold, General Manger/Vice President, Shoreham Telephone
   Company, Inc. and Mr. Kenneth E. Hardman, Esq., Moir & Hardman (December
   6, 2006) ("December 6 LOI").

   47 C.F.R. 64.2009(e).

   Section 222 of the Communications Act provides that: "Every
   telecommunications carrier has a duty to protect the confidentiality of
   proprietary information of, and relating to, other telecommunications
   carriers, equipment manufacturers, and customers, including
   telecommunication carriers reselling telecommunications services provided
   by a telecommunications carrier." 47 U.S.C. S: 222.

   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,  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 and 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 and Implementation of the
   Non-Accounting Safeguards of Sections 271 and 272 of the Communications
   Act of 1934, as amended; 2000 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: 64.2009(e). This rule has been amended since issuance of the
   NAL against Shoreham. The quoted rule is cited as it was at the time of
   the alleged violation.

   See, e.g. http://www.epic.org/privacy/iei/.

   See id.

   See note 1, supra.

   Letter from Jim Arnold, Shoreham Telephone Company, to Marcy Greene,
   Deputy Division Chief, Telecommunications Consumers Division, Enforcement
   Bureau, Federal Communications Commission (December 7, 2006)("response to
   LOI").

   In the Matter of Shoreham Telephone Company, Inc., Notice of Apparent
   Liability for Forfeiture, 22 FCC Rcd. 5511 (Enf. Bur. rel. March 29, 2007)
   ("NAL").

   Id.

   Response of Shoreham Telephone Company, Inc. to the Notice of Apparent
   Liability for Forfeiture dated April 30, 2007.

   Prior to March 1, 2010, Shoreham would send a copy to the Division Chief
   of its CPNI certification for calendar year 2009. In addition, prior to
   March 1, 2011, Shoreham would send a copy to the Division Chief of its
   CPNI certification for calendar year 2010.

   Federal Communications Commission DA 10-833

   2

   5

   Federal Communications Commission DA 10-833