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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
)
In the Matter of File No. EB-09-IH-1176
)
Globalcom, Inc. NAL/Acct. No. 201032080022
)
Apparent Liability for Forfeiture FRN No. 0004325320
)
)
)
NOTICE OF APPARENT LIABILITY FOR FORFEITURE
Adopted: March 26, 2010 Released: March 30, 2010
By the Commission:
I. INTRODUCTION
1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
that Globalcom, Inc. ("Globalcom"), apparently violated section 254(d)
of the Communications Act of 1934, as amended (the "Act"), and
sections 54.706(a) and 54.711(a) of the Commission's rules, by
willfully or repeatedly failing to make required regulatory filings,
as well as failing to contribute fully and timely to the Universal
Service Fund ("USF"). Based on our review of the facts and
circumstances surrounding this matter, and for the reasons discussed
below, we find that Globalcom is apparently liable for a total
forfeiture of $800,700. We find this significant forfeiture is
warranted based on Globalcom's repeated failures to satisfy its
obligations to the USF, spanning more than a year's time and amounting
to a delinquency of more than $960,000 to the Fund.
2. We order Globalcom to submit within thirty days a report, supported by
a sworn statement or declaration under penalty of perjury of a
corporate officer, setting forth in detail its plan to come into
compliance with the reporting and payment obligations discussed
herein.
II. BACKGROUND
3. The Act codifies Congress's historic commitment to promote universal
service to ensure that consumers in all regions of the nation have
access to affordable, quality telecommunications services. In
particular, section 254(d) of the Act requires, among other things,
that "[e]very telecommunications carrier [providing] interstate
telecommunications services . . . contribute, on an equitable and
nondiscriminatory basis, to the specific, predictable, and sufficient
mechanisms established by the Commission to preserve and advance
universal service." In implementing this Congressional mandate, the
Commission directed all telecommunications carriers providing
interstate telecommunications services and certain other providers of
interstate telecommunications to register with the Commission, comply
with annual and quarterly filing requirements, and contribute to the
universal service fund based upon their interstate and international
end-user telecommunications revenues. The Universal Service
Administrative Company ("USAC") currently administers the USF. USAC
uses the revenue projections submitted on the quarterly filings to
determine each carrier's monthly universal service contribution
amount, and bills them accordingly each month. Consistent with the
Debt Collection Improvement Act of 1996 ("DCIA"), USF contributions
that have become over 90 days delinquent are transferred to the
Commission for further action to collect the outstanding debt. Failure
by some providers to pay their share into the USF skews the playing
field by giving them an economic advantage over their competitors, who
must then shoulder more than their fair share of the costs of
universal service.
4. The Commission has established specific procedures for the
administration of the USF and other associated federal regulatory
programs. Pursuant to section 54.711(a) of the Commission's rules, a
carrier is required to file FCC Form 499-A, also known as the annual
Telecommunications Reporting Worksheet ("annual Worksheet" or "Form
499-A"), for the purpose of determining its USF, Telecommunications
Relay Services Fund ("TRS Fund"), Local Number Portability ("LNP"),
and North American Numbering Plan ("NANP") administration and
regulatory fee payments, and, with certain exceptions, to file
Quarterly Telecommunications Reporting Worksheets ("quarterly
Worksheet" or "Form 499-Q") to determine its monthly universal service
contribution amounts. These periodic filings trigger a determination
of liability, if any, and subsequent billing and collection by the
entities that administer the regulatory programs. Carriers must timely
pay their contribution invoices, and the Commission's rules explicitly
warn contributors that failure to file forms or submit payments
potentially subjects them to enforcement action.
5. Globalcom is an Illinois-based company that has provided
telecommunications services since 1996. A facilities-based provider of
voice and data services, Globalcom provides local and long distance
services primarily to small and medium-sized businesses. First
Communications, Inc. acquired Globalcom's holding company, GCI
Globalcom Holdings, Inc., on October 1, 2008.
6. In July 2009, USAC referred Globalcom to the Bureau for potential
enforcement action, alleging that Globalcom had failed to comply with
the Commission's USF contribution rules. The Bureau initiated an
investigation against Globalcom on August 6, 2009, by issuing a letter
of inquiry ("LOI") to Globalcom seeking information about its
compliance with USF and other related regulatory obligations.
Globalcom's LOI Response indicates that it failed to pay certain USAC
invoices in full and on time, and that it failed to timely file
certain quarterly and annual worksheets. Specifically, since the
October 2008 acquisition, Globalcom failed on nine occasions to pay
any contribution toward its outstanding USF obligations, and it made
only partial payments toward its USF obligations on four occasions.
Lastly, Globalcom failed to timely file its annual Worksheet for 2009,
as well as its quarterly Worksheet for May 2009. Both of these
Worksheets were filed in September 2009, months after they were due
and immediately following Globalcom's receipt of the LOI.
III. DISCUSSION
7. Under section 503(b)(1) of the Act, any person who is determined by
the Commission to have willfully or repeatedly failed to comply with
any provision of the Act or any rule, regulation, or order issued by
the Commission shall be liable to the United States for a forfeiture
penalty. Section 312(f)(1) of the Act defines willful as "the
conscious and deliberate commission or omission of [any] act,
irrespective of any intent to violate" the law. The legislative
history to section 312(f)(1) of the Act clarifies that this definition
of willful applies to both sections 312 and 503(b) of the Act, and the
Commission has so interpreted the term in the section 503(b) context.
The Commission may also assess a forfeiture for violations that are
merely repeated, and not willful. "Repeated" means that the act was
committed or omitted more than once, or lasts more than one day. To
impose such a forfeiture penalty, the Commission must issue a notice
of apparent liability, and the person against whom the notice has been
issued must have an opportunity to show, in writing, why no such
forfeiture penalty should be imposed. The Commission will then issue a
forfeiture if it finds, based on the evidence, that the person has
violated the Act or a Commission rule. As set forth below, we conclude
that Globalcom is apparently liable for forfeiture for its apparent
willful and repeated violations of section 254(d) of the Act and
sections 54.706(a) and 54.711(a) of the Commission's rules.
8. The fundamental issues in this case are whether Globalcom apparently
violated the Act and the Commission's rules by (1) willfully or
repeatedly failing to make required contributions to the USF; and (2)
willfully or repeatedly failing to file accurate and timely quarterly
and annual FCC Forms 499. We answer these questions in the
affirmative. Based on the facts and circumstances before us, we
therefore conclude that Globalcom is apparently liable for a
forfeiture of $800,700.
A. Globalcom Apparently Failed To Make Universal Service Fund
Contributions
9. We conclude that Globalcom has apparently violated section 254(d) of
the Act and section 54.706 of the Commission's rules by willfully and
repeatedly failing to contribute fully and timely to the universal
service support mechanisms. Section 54.706(a) of the Commission's
rules unambiguously directs that "entities [providing] interstate
telecommunications to the public . . . for a fee . . . contribute to
the universal service support mechanisms." "Interstate
telecommunications" include, among other things, "access to
interexchange service" and "resale of interstate services," such as
those provided by Globalcom. Globalcom acknowledges that it was
required to make USF contributions at all relevant times.
10. Globalcom's USF payment problems began in November 2008 when the
company paid less than the balance due on its invoices due in November
and December 2008 and January and February 2009. Its payment problems
worsened after that, however, when between March and December 2009,
Globalcom failed to remit any contribution toward its outstanding USF
obligations. Since March 2009, Globalcom made only one USF payment, on
September 8, 2009, 33 days after the Bureau sent its LOI to the
company. This payment was nevertheless insufficient to pay the amount
due at that time. As a result of these failures - and particularly
since mid-2009 - Globalcom has maintained large outstanding USF
balances with USAC. At one point, Globalcom had an outstanding USF
balance amounting to more than $960,000. Globalcom does not dispute
that it owed the money or that it failed to pay the full balance due
to the USF.
11. Based on the record developed in our investigation, we find that
Globalcom has apparently violated section 254(d) of the Act and
section 54.706 of the Commission's rules by willfully and repeatedly
failing to contribute fully and timely to the USF since November 2008.
B. Globalcom Apparently Failed to Submit Timely Telecommunications
Reporting Worksheets
12. A carrier's failure to file the required periodic Telecommunications
Reporting Worksheets has serious implications for the USF and other
programs. With regard to the federal universal service program in
particular, the failure of a carrier such as Globalcom to abide by its
federal filing obligations has a direct and profound detrimental
impact by removing from the base of USF contributions
telecommunications revenues that otherwise should be included, thereby
shifting to compliant carriers additional economic burdens associated
with the federal universal service program. Consequently, a carrier's
failure to file required Worksheets frustrates the very purpose for
which Congress enacted section 254(d) of the Act - to ensure that
every interstate carrier "contribute, on an equitable and
nondiscriminatory basis, to the specific, predictable, and sufficient
mechanisms established by the Commission to preserve and advance
universal service." Viewed in this context, the Telecommunications
Reporting Worksheet is not only an administrative tool, but a
fundamental and critical component of the Commission's universal
service program.
13. We conclude that Globalcom apparently violated section 254(d) of the
Act and section 54.711(a) of the Commission's rules by willfully and
repeatedly failing to file certain Telecommunications Reporting
Worksheets on a timely basis in April and May 2009. Section 54.711(a)
requires contributors to submit a Worksheet with specified information
to USAC annually and quarterly, with certain exceptions. Globalcom
does not dispute that it was required to file Worksheets annually and
quarterly at all relevant times. Globalcom did not file its 2009 Form
499-A until September 9, 2009, five months after it was due.
Additionally, Globalcom filed its quarterly worksheet for May 2009
four months late, on September 3, 2009. Both of these filings were
made immediately following Globalcom's receipt of the Bureau's LOI.
Based on Globalcom's filing history, we find that Globalcom apparently
violated section 254(d) of the Act and section 54.711(a) of the
Commission's rules by willfully and repeatedly failing to timely file
Telecommunications Reporting Worksheets.
C. Proposed Forfeiture Amount
14. Section 503(b)(1) of the Act provides that any person who willfully or
repeatedly fails to comply with any provision of the Act or any rule,
regulation, or order issued by the Commission shall be liable to the
United States for a forfeiture penalty. Section 503(b)(2)(B) of the
Act authorizes the Commission to assess a forfeiture of up to $150,000
for each violation or each day of a continuing violation, up to a
statutory maximum of $1,500,000 for a single act or failure to act. In
determining the appropriate forfeiture amount, we consider the factors
enumerated in section 503(b)(2)(E) of the Act, including "the nature,
circumstances, extent and gravity of the violation, and, with respect
to the violator, the degree of culpability, any history of prior
offenses, ability to pay, and such other matters as justice may
require," as well as our forfeiture guidelines.
15. We find that Globalcom failed to make payments to the USF on nine
occasions between March and December 2009, and it made only partial
payments in December 2008 and January, February and August 2009.
Nonpayment of universal service contributions is an egregious offense.
It not only deprives the USF of resources necessary to preserve and
advance universal service, but it also bestows on delinquent entities
an unfair competitive advantage by shifting to compliant contributors
the economic costs and burdens associated with universal service. An
entity's failure to make required universal service contributions
frustrates Congress' policy objective in section 254(d) of the Act to
ensure the equitable and non-discriminatory distribution of universal
service costs among all telecommunications providers. The Commission
has established a base forfeiture amount of $10,000 for each month in
which a contributor has failed to fully pay required universal service
contributions and $20,000 for each month in which a contributor has
failed to make any required universal service contribution, plus an
upward adjustment based on one-half of the company's approximate
unpaid contributions. In addition, the Commission has treated failures
to pay universal service and other obligations as continuing
violations. Our forfeiture calculation therefore reflects not only
violations that began within the last twelve months, but all
violations, unless they were cured more than one year ago.
16. As a result, we find that Globalcom is apparently liable for willfully
and repeatedly failing to contribute fully and timely to the USF on a
total of thirteen occasions between December 2008 and December 2009.
Accordingly, we assess a $20,000 forfeiture for each of the nine
months in which Globalcom failed to remit any contribution toward its
outstanding USF obligation. We also assess $10,000 for each of the
four months in which Globalcom contributed less than the amount of its
monthly obligation, as provided on the corresponding invoices. Thus,
we find Globalcom apparently liable for a base forfeiture of $220,000
for its willful and repeated failures to contribute fully and timely
to the USF on thirteen occasions between December 2008 and the date of
this NAL. Moreover, consistent with our approach for assessing
liability for apparent USF violations, and taking into account all the
factors enumerated in section 503(b)(2)(E) of the Act, we also add an
upward adjustment of $480,700, approximately one-half of the largest
amount of Globalcom's unpaid USF contributions due to USAC and the FCC
during the period at issue, to the base forfeiture. We therefore find
Globalcom apparently liable for a forfeiture of $700,700 for its
apparent willful or repeated failures to contribute fully and timely
to the USF.
17. We further find that Globalcom's willful and repeated failures to
timely file the required Telecommunications Worksheets are egregious.
By failing to provide the necessary revenue information on a timely
basis, Globalcom has delayed payment into the USF and related
programs, thereby interfering with the administration of those
programs. Globalcom did not file its annual Telecommunications
Worksheet that was due April 1, 2009 until September 9, 2009.
Similarly, Globalcom failed to timely file the quarterly Worksheet due
on May 1, 2009, filing it on September 3, 2009. A contributor's
obligation to file these Worksheets is directly linked to, and thus
has serious implications for, administration of the USF and related
programs. Globalcom's delayed payment into these programs shifted to
compliant contributors and their customers the economic costs
associated with the administration of these programs. As noted above,
in the past, the Commission has proposed a forfeiture of $50,000 for
each failure to file a Worksheet or for filing an inaccurate quarterly
or annual Worksheet. Accordingly, we find that Globalcom is apparently
liable for a $100,000 forfeiture for failure to timely file FCC Forms
499 due on April 1 and May 1, 2009.
IV. CONCLUSION
18. In light of the seriousness, duration and scope of the apparent
violations, we propose a forfeiture in the amount of $800,700. As
discussed, this proposed forfeiture amount includes a total proposed
forfeiture of $700,700 for Globalcom's failure to pay its USF
obligations, and a total proposed forfeiture of $100,000 for
Globalcom's failure to timely file Telecommunications Reporting
Worksheets.
19. We caution that additional violations of the Act or the Commission's
rules could subject Globalcom to further enforcement action. Such
action could take the form of higher monetary forfeitures and/or
possible revocation of Globalcom's operating authority, including
disqualification of Globalcom's principals from the provision of any
interstate common carrier services without the prior consent of the
Commission.
V. ORDERING CLAUSES
20. ACCORDINGLY, IT IS ORDERED THAT, pursuant to section 503(b) of the
Communications Act of 1934, as amended, 47 U.S.C. S: 503(b), and
section 1.80 of the Commission's rules, 47 C.F.R. S: 1.80, that
Globalcom is hereby NOTIFIED of its APPARENT LIABILITY FOR A
FORFEITURE in the amount of $800,700 for willfully and repeatedly
violating the Act and the Commission's rules.
21. IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of the
Commission's Rules, within thirty days of the release date of this
NOTICE OF APPARENT LIABILITY, Globalcom SHALL PAY the full amount of
the proposed forfeiture or SHALL FILE a written statement seeking
reduction or cancellation of the proposed forfeiture.
22. IT IS FURTHER ORDERED THAT Globalcom shall submit within thirty days
of the release date of this NOTICE OF APPARENT LIABILITY, a report
supported by a sworn statement or declaration under penalty of perjury
of a corporate officer setting forth in detail its plan to come into
compliance with the reporting and payment obligations discussed
herein. The report must be mailed to Hillary S. DeNigro, Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Suite 4-C330,
Washington, D.C. 20554. Globalcom shall also transmit a copy of the
report via email to hillary.denigro@fcc.gov.
23. Payment of the forfeiture must be made by check or similar instrument,
payable to the order of the Federal Communications Commission. The
payment must include the NAL/Acct. No. and FRN No. referenced above.
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. 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).
Globalcom will also send electronic notification within forty-eight
(48) hours of the date said payment is made to Mindy.Littell@fcc.gov.
24. The response, if any, to this NOTICE OF APPARENT LIABILITY must be
mailed to Hillary S. DeNigro, Chief, Investigations and Hearings
Division, Enforcement Bureau, Federal Communications Commission, 445
12th Street, S.W., Room 4-C330, Washington, D.C. 20554 and must
include the NAL/Acct. No. referenced above.
25. The Commission will not consider reducing or canceling a forfeiture in
response to a claim of inability to pay unless the petitioner submits:
(1) federal tax returns for the most recent three-year period; (2)
financial statements prepared according to generally accepted
accounting practices (GAAP); or (3) some other reliable and objective
documentation that accurately reflects the petitioner's current
financial status. Any claim of inability to pay must specifically
identify the basis for the claim by reference to the financial
documentation submitted.
26. Requests for payment of the full amount of this Notice of Apparent
Liability under an installment plan should be sent to: Chief Financial
Officer -- Financial Operations, Federal Communications Commission,
445 12th Street, S.W., Room 1-A625, Washington, D.C. 20554. For
answers to questions, please contact the Financial Operations Group
Help Desk at 1-877-480-3201 or Email: ARINQUIRIES@fcc.gov.
27. IT IS FURTHER ORDERED that a copy of this NOTICE OF APPARENT LIABILITY
FOR FORFEITURE shall be sent by certified mail, return receipt
requested, to Globalcom, Inc., Raymond Hexamer, Chief Executive
Officer, 3340 West Market St., Akron, OH 44333.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
47 U.S.C. S: 254(d).
47 C.F.R. S:S: 54.706(a) and 54.711(a).
47 U.S.C. S: 254(d).
47 C.F.R. S:S: 54.706(b), 54.711, 64.1195. See also 47 U.S.C. S: 254(d)
("Any other provider of interstate telecommunications may be required to
contribute to the preservation and advancement of universal service if the
public interest so requires."). Contributions are based on a contributor's
projected revenues, and individual universal service contribution amounts
that are based upon quarterly filings are subject to an annual true-up.
Id.; 47 C.F.R. S: 54.709(b).
47 C.F.R. S: 54.701(a).
See 47 C.F.R. S: 54.709.
See Debt Collection Improvement Act of 1996, Pub. L. No. 104-134, 110
Stat. 1321, 1358 (1996). Pursuant to the "red light rule," the Commission
withholds action on applications or other requests for benefits by
delinquent debtors and ultimately dismisses such applications or other
requests if the delinquency is not resolved. See 47 C.F.R. S: 1.1910.
Invoices for USF contributions that become over 90 days delinquent are
transferred to the Commission for further collection. See
http://www.universalservice.org/fund-administration/contributors/understanding-your-invoice/important-invoicing-deadlines.aspx.
Debt collection procedures may include further administrative efforts both
by the Commission and the United States Treasury or, as appropriate, the
Commission may refer the delinquent debt to the Department of Justice for
enforced collection action. 47 C.F.R. S: 1.1917. Collection efforts may
result in additional charges, to include interest and penalties, as
provided under 31 U.S.C. S: 3717, and administrative charges pursuant to
47 C.F.R. S:S: 1.1940 and 54.713, 31 C.F.R. S: 285.12(j).
See FCC Form 499-A Telecommunications Reporting Worksheet - Annual
Filing, http://www.fcc.gov/Forms/Form499-A/499a-2009.pdf (February 2009)
("Annual Worksheet").
See Federal-State Joint Board on Universal Service, Petition for
Reconsideration filed by AT&T, Report and Order and Order on
Reconsideration, 16 FCC Rcd 5748 (2001) ("Quarterly Reporting Order").
Carriers report their revenues for the prior quarter by the beginning of
the second month in each quarter (i.e., February 1, May 1, August 1, and
November 1). See Quarterly Reporting Order, 16 FCC Rcd at 5755, P: 19 &
n.32. See also FCC Form 499-Q Telecommunications Reporting Worksheet -
Quarterly Filing for Universal Service Contributors,
http://www.fcc.gov/Forms/Form499-Q/499q.pdf (April 2009) ("Quarterly
Worksheet").
See 47 C.F.R. S: 54.709.
See 47 C.F.R. S: 54.711(a) ("The Commission shall announce by Public
Notice published in the Federal Register and on its website the manner of
payment and the dates by which payments must be made."); "Proposed Second
Quarter 2006 Contribution Factor," Public Notice, 21 FCC Rcd 2379
(Wireline Comp. Bur. 2006) ("Contribution payments are due on the date
shown on the invoice."). See also 47 C.F.R. S: 54.713(b) (noting that if a
USF "contributor fails to make full payment on or before the date due of .
. . the monthly invoice provided by the Administrator, the payment is
delinquent."). Id. The Act and our rules, however, do not condition
payment on receipt of an invoice or other notice from USAC or other fund
administrator. See 47 U.S.C. S: 254(d); 47 C.F.R. S:S: 54.706(b) and
64.604(c)(5)(iii)(A). A carrier that does not file may not receive an
invoice from USAC, but is nonetheless required to contribute to the USF,
unless its revenues are considered de minimis. See Globcom, Inc., Notice
of Apparent Liability, 18 FCC Rcd 19890, 19896, P: 5, n.22 (2003)
("Globcom NAL") (subsequent history omitted). The instructions for the
Worksheet include tables for carriers to determine their annual
contributions. Providers whose annual contribution is less than $10,000
are considered de minimis and exempted from contributing to the USF. 47
C.F.R. S: 54.708.
See 47 C.F.R. S: 54.713.
See Response of Globalcom, Inc. to the Enforcement Bureau's August 6, 2009
Letter of Inquiry, dated Sept. 22, 2009, at response to Question 2 ("LOI
Response").
Id. at response to Question 4.
See Press Release of First Communications, Inc., "Welcome Letter from Ray
Hexamer, Chief Executive Officer of First Communications," dated Oct. 1,
2008, available at http://www.global-com.com/news_detail.aspx?id=1210.
Letter from Trent B. Harkrader, Deputy Chief, Investigations & Hearings
Division, Enforcement Bureau, FCC, to Raymond Hexamer, Chief Executive
Officer, First Communications d/b/a Globalcom, Inc., dated August 6, 2009
("LOI").
See LOI Response at responses to Questions 9 and 11.
As a result of Globalcom's failures to satisfy its large outstanding
balances owed to the USF, USAC transferred $447,177.55 of the company's
debt to the Commission for collection procedures, pursuant to the DCIA.
USAC transferred this debt to the Commission over the period from August
to November 2009. See USAC Invoices Issued to Globalcom, Inc., dated
August 2009 through November 2009.
47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(1); see also 47 U.S.C. S:
503(b)(1)(D) (forfeitures for violation of 14 U.S.C. S: 1464).
47 U.S.C. S: 312(f)(1).
H.R. Rep. No. 97-765, 97th Cong. 2d Sess. 51 (1982).
See, e.g., Application for Review of Southern California Broadcasting Co.,
Memorandum Opinion and Order, 6 FCC Rcd 4387, 4388 (1991) ("Southern
California Broadcasting Co.").
See, e.g., Callais Cablevision, Inc., Grand Isle, Louisiana, Notice of
Apparent Liability for Monetary Forfeiture, 16 FCC Rcd 1359, 1362, P: 10
(2001) ("Callais Cablevision") (issuing a Notice of Apparent Liability
for, inter alia, a cable television operator's repeated signal leakage).
Southern California Broadcasting Co., 6 FCC Rcd at 4388, P: 5; Callais
Cablevision, Inc., 16 FCC Rcd at 1362, P: 9.
47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(f).
See, e.g., SBC Communications, Inc., Apparent Liability for Forfeiture,
Forfeiture Order, 17 FCC Rcd 7589, 7591, P: 4 (2002) (forfeiture paid).
47 U.S.C. S: 254(d).
47 C.F.R. S:S: 54.706(a) and 54.711(a).
47 U.S.C. S: 254(d); 47 C.F.R. S: 54.706(a).
47 C.F.R. S: 54.706(a).
Id.
See LOI Response at response to Question 11.
Id.
See id.
Id.
The violations continued with each subsequent day on which Globalcom
failed to make full payment. See Globcom, Inc., Order of Forfeiture, 21
FCC Rcd 4710, 4723, P: 35 n.105 (2006) ("Globcom Forfeiture Order") ("Each
failure to pay the amount due each month constituted a violation that
continued for more than 10 days."). USAC's practice is to apply partial
payments to the oldest debt carried on USAC's books first, and not the
current billed amount. See North American Telephone Network, LLC,
Forfeiture Order, 16 FCC Rcd 4836, 4838, P: 8 n.12 (2001); Intellicall
Operator Services, Forfeiture Order, 15 FCC Rcd 21771, 21772, P: 6 n.8.
This practice was codified by the Commission in 2007. See Comprehensive
Review of the Universal Service Fund Management, Administration, and
Oversight; Federal-State Joint Board on Universal Service; Schools and
Libraries Universal Service Support Mechanism; Lifeline and Link Up;
Changes to the Board of Directors for the National Exchange Carrier
Association, Inc., Report and Order, 22 FCC Rcd 16372, 16380-81, P: 16
(2007); 47 C.F.R. S: 54.713(e). Each violation is considered continuing
until cured by full payment of each monthly obligation, as provided on the
corresponding invoices. See Telrite Corp., Notice of Apparent Liability
for Forfeiture and Order, 23 FCC Rcd 7231, 7238-39, P: 15 (2008) ("Telrite
NAL"); Compass Global, Inc., Notice of Apparent Liability for Forfeiture,
23 FCC Rcd 6125, 6140, P: 33 (2008) ("Compass Global NAL"); Global
Crossing North America, Inc., Notice of Apparent Liability for Forfeiture,
23 FCC Rcd 6110, 6122, P:P: 25-27 (2008) ("Global Crossing NAL"); VCI
Company, Notice of Apparent Liability for Forfeiture and Order, 22 FCC Rcd
15933, 15940, P: 24 & n.69 (2007) ("VCI NAL"); Matrix Telecom, Inc.,
Notice of Apparent Liability, 15 FCC Rcd 13544 (2000); Conquest Operator
Services Corp., Order of Forfeiture, 14 FCC Rcd 12518, 12525, P: 16
(1999).
See LOI Response at response to Question 11.
47 U.S.C. S: 254(d).
47 C.F.R. S: 54.711(a).
See supra, para. 4.
47 U.S.C. S: 503(b)(1)(B); 47 C.F.R. S: 1.80(a)(2).
47 U.S.C. S: 503(b)(2)(B); see also 47 C.F.R. S: 1.80(b)(2); Amendment of
Section 1.80(b) of the Commission's Rules, Adjustment of Forfeiture Maxima
to Reflect Inflation, Order, 15 FCC Rcd 18221 (2000).
47 C.F.R. S: 1.80(b)(4), Note, Guidelines for Assessing Forfeitures.
See supra para. 11.
See 47 U.S.C. S: 254(d).
See OCMC, Inc., Order of Forfeiture, 21 FCC Rcd 10479, 10482, P: 10 (2006)
("OCMC Forfeiture Order"); Globcom NAL, 18 FCC Rcd at 19903-04, P:P:
25-27; Globcom Forfeiture Order, 21 FCC Rcd at 4721-24, P:P: 31-38.
See, e.g., Globcom Forfeiture Order, 21 FCC Rcd at 4722, P: 33; OCMC
Forfeiture Order, 21 FCC Rcd at 10482, P: 10.
See, e.g. Global Crossing NAL, 23 FCC Rcd at 6120-21, P:P: 21-24
(proposing $10,518,013 forfeiture for, inter alia, the apparent failure to
make required universal service contributions); Telrite NAL, 23 FCC Rcd at
7245-46, P: 36 (proposing $924,212 forfeiture for, inter alia, the
apparent failure to make required universal service contributions);
Compass Global NAL, 23 FCC Rcd at 6140-42, P:P: 34-38 (proposing
$828,613.44 forfeiture for, inter alia, the apparent failure to make
required universal service contributions).
These months consist of March, April, May, June, July, September, October,
November, and December 2009. See supra para. 11.
These months consist of December 2008, January 2009, February 2009, and
August 2009. See supra para. 11.
See supra, para. 10.
See supra para. 12.
See id.
See Globcom Forfeiture Order, 41 FCC Rcd at 4720, P:P: 26-28; InPhonic,
Inc., Notice of Apparent Liability of Forfeiture and Order, 20 FCC Rcd
13277, 13287, P: 26 (2005).
Globalcom continues to have an unpaid outstanding balance due to USAC. We
note that payment of the forfeiture proposed in this NAL does not absolve
Globalcom of its liability for its obligations to pay its delinquent
balance due to the USF. As discussed supra at note 8, debt collection
procedures may include further administrative efforts both by the
Commission and the United States Treasury or, as appropriate, the
Commission may refer the delinquent debt to the Department of Justice for
enforced collection action. 47 C.F.R. S: 1.1917.
See Business Options, Inc., Consent Decree, 19 FCC Rcd 2916 (2003); NOS
Communications, Inc., Affinity Network Incorporated and NOSVA Limited
Partnership, Consent Decree, 2003 WL 22439710 (2003).
See 47 C.F.R. S: 1.1914.
See id.
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