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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

   In the Matter of ) File No.: EB-10-IH-2091

   )

   Windstream Iowa Communications, Inc. ) NAL/Acct. No.: 201232080011

   )

   Apparent Liability for Forfeiture ) FRN: 0019527837

                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted: December 13, 2011 Released: December 14, 2011

   By the Chief, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
       that Windstream Iowa Communications, Inc. ("Windstream Iowa")
       apparently willfully violated Section 214(a) of the Communications Act
       of 1934, as amended (the "Act"), and Sections 63.03 and 63.04 of the
       Commission's rules, by failing to obtain Commission approval prior to
       obtaining control of a domestic Section 214 authorization held by
       Direct Communications, LLC ("Direct"). Based on our review of the
       facts and circumstances surrounding this matter, and for the reasons
       discussed below, we find that Windstream Iowa is apparently liable for
       a total forfeiture of $8,000.

   II. BACKGROUND

    2. Section 214(a) of the Act prohibits any carrier from constructing,
       extending, acquiring or operating any line, and from engaging in
       transmission through any such line, "unless and until there shall
       first have been obtained from the Commission a certificate that the
       present or future public convenience and necessity" require, or will
       require, the construction, extension, acquisition, or operation of the
       line. Sections 63.03 and 63.04 of the rules require Commission
       approval before a transfer of control or assignment of a domestic
       Section 214 authorization is consummated.

    3. Iowa Telecommunications Services, Inc. ("Iowa Telecom") is an
       Iowa-based company that operates as a local exchange services
       provider. On July 1, 2009, Iowa Telecom acquired substantially all of
       the assets of Sherburne Tele Systems, Inc. ("Sherburne") and its
       subsidiaries, including Sherburne's interest in Direct, a
       telecommunications service provider offering fiber optic transport
       services. Before the parties consummated their transaction on July 1,
       2009, Iowa Telecom apparently sought Commission approval to transfer
       most of Sherburne's Commission authorizations to Iowa Telecom, but
       Iowa Telecom did not seek Commission approval for the transfer of
       Direct's domestic Section 214 authority to Iowa Telecom.

    4. Iowa Telecom did not file an application with the Commission's
       Wireline Competition Bureau ("WCB") for approval to transfer control
       of Direct's domestic Section 214 authorization to Iowa Telecom until
       December 14, 2009, more than six months after it had consummated its
       transaction with Sherburne. WCB granted Iowa Telecom's application on
       January 22, 2010. On April 14, 2010, the Enforcement Bureau issued a
       letter of inquiry ("LOI") to Iowa Telecom, directing the company to
       respond to inquiries concerning the transfer of Direct's domestic
       Section 214 authorization to Iowa Telecom. Iowa Telecom responded to
       the LOI on April 29, 2010. On June 1, 2010, Iowa Telecom merged with
       and into Buffalo Merger Sub, Inc. ("Buffalo"), a subsidiary of
       Windstream Corporation ("Windstream"). After this merger, Buffalo
       became Windstream Iowa.

   III. DISCUSSION

    5. Under Section 503(b)(1) of the Act, "[a]ny person who is determined by
       the Commission . . . to have . . . willfully or repeatedly failed to
       comply with any of the provisions of this Act or of any rule,
       regulation, or order issued by the Commission under this Act . . .
       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 any provision of this Act or any rule or regulation
       by the Commission authorized by this Act." 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.
       To impose 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, a rule, or a Commission order.

   A. Apparent Violation of Section 214

    6. We conclude that it is apparent that Windstream Iowa's predecessor,
       Iowa Telecom, willfully violated Section 214 of the Act and Sections
       63.03 and 63.04 of the rules because it failed to obtain Commission
       approval before consummating a substantial transfer of control of a
       domestic Section 214 authorization.  Iowa Telecom did not file an
       application for Commission approval until December 14, 2009, more than
       6 months after its July 1, 2009 transfer of control.

   B. Proposed Forfeiture

    7. In determining the amount of a forfeiture penalty, Section
       503(b)(2)(E) of the Act and Section 1.80(a)(4) of the rules direct the
       Commission to take into account "the nature, circumstances, extent,
       and gravity of the violation . . . and the degree of culpability, any
       history of prior offenses, ability to pay, and such other matters as
       justice may require." The Commission's Forfeiture Policy Statement and
       implementing rules prescribe a base forfeiture of $8,000 for each
       separate unauthorized substantial transfer of control. Based on the
       facts and circumstances presented, we conclude that a proposed
       forfeiture of $8,000 against Windstream Iowa is warranted.

   IV. ORDERING CLAUSES

    8. ACCORDINGLY, IT IS ORDERED that, pursuant to Section 503(b) of the Act
       and Sections 0.111, 0.311, 0.314 and 1.80 of the rules, Windstream
       Iowa Communications, Inc. is hereby NOTIFIED of its APPARENT LIABILITY
       FOR A FORFEITURE in the amount of $8,000 for apparently willfully or
       repeatedly violating Section 214 of the Act and Sections 63.03 and
       63.04 of the rules.

    9. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the rules,
       within thirty (30) calendar days of the release date of this Notice of
       Apparent Liability for Forfeiture, Windstream Iowa Communications,
       Inc. SHALL PAY the full amount of the proposed forfeiture or SHALL
       FILE a written statement seeking reduction or cancellation of the
       proposed forfeiture.

   10. 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 referenced above.
       Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 979088, St. Louis, MO 63197-0000.
       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
       2700001. 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 23A (call sign/other ID), and enter the
       letters "FORF" in block number 24A (payment type code). ATMS will also
       send electronic notification within forty-eight (48) hours of the date
       said payment is made to Terry Cavanaugh at Terry.Cavanaugh@fcc.gov,
       Pamela Kane at Pamela.Kane@fcc.gov, and David Janas at
       David.Janas@fcc.gov.

   11. The written statement seeking reduction or cancellation of the
       proposed forfeitures, if any, must include a detailed factual
       statement supported by appropriate documentation and affidavits
       pursuant to Sections 1.80(f)(3) and 1.16 of the Commission's rules.
       The written statement must be mailed to Theresa Z. Cavanaugh, Acting
       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. The written statement should also be emailed to Terry Cavanaugh
       at Terry.Cavanaugh@fcc.gov, Pamela Kane at Pamela.Kane@fcc.gov, and
       David Janas at David.Janas@fcc.gov.

   12. 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.

   13. Requests for payment of the full amount of this Notice of Apparent
       Liability for Forfeiture 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 regarding payment procedures, contact
       the Financial Operations Group Help Desk at 1-877-480-3201 or Email:
       ARINQUIRIES@fcc.gov.

   14. 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 Malena F. Barzilai, Regulatory Counsel and Director,
       Federal Government Affairs, Windstream Communications, 1101 17th
       Street, N.W., Suite 802, Washington, D.C.  20036.

   FEDERAL COMMUNICATIONS COMMISSION

   P. Michele Ellison

   Chief, Enforcement Bureau

   47 U.S.C. 214(a).

   47 C.F.R. S:S: 63.03, 63.04.

   Supra note 1.

   Supra note 2.

   See Letter from Gregory Vogt, Counsel to Iowa Telecommunications Services,
   Inc., to Trent Harkrader, Deputy Chief, Investigations & Hearings
   Division, Enforcement Bureau, Federal Communications Commission, Exhibit 1
   (Apr. 29, 2010) ("LOI Response").

   See id. Iowa Telecom has admitted that it should have obtained Commission
   authority to transfer control of Sherburne's interest in Direct before
   July 1, 2009. Id.

   Domestic Section 214 Application Filed for the Acquisition of Assets of
   Direct Communications, LLC by Iowa Telecommunications Services, Inc.,
   Public Notice, 24 FCC Rcd 14636 (Wireline Competition Bureau 2010).

   Notice of Domestic Section 214 Authorizations Granted, Public Notice, 25
   FCC Rcd 863 (Wireline Competition Bureau 2010).

   Letter from Trent Harkrader, Deputy Chief, Investigations & Hearings
   Division, Enforcement Bureau, Federal Communications Commission, to
   Gregory Vogt, Counsel to Iowa Telecommunications Services, Inc. (Apr. 14,
   2010).

   See supra note 5.

   See Domestic Section 214 Application Filed for the Transfer of Control of
   Iowa Telecommunications Services, Inc. to Windstream Corporation, Public
   Notice, 25 FCC Rcd 444, 445 (Wireline Competition Bureau 2010); see also
   Electronic mail message from Malena F. Barzilai, Regulatory Counsel and
   Director, Federal Government Affairs, Windstream Communications, to David
   Janas, Special Counsel, Investigations & Hearings Division, Enforcement
   Bureau, Federal Communications Commission (Nov. 16, 2011).

   47 U.S.C. S: 503(b)(1); see also 47 C.F.R. S: 1.80(a)(1).

   47 U.S.C. S: 312(f)(1).

   H.R. Rep. No. 97-765, 97th Cong. 2d Sess. 51 (1982).

   See, e.g., Southern California Broadcasting Co., Memorandum Opinion and
   Order, 6 FCC Rcd. 4387, 4388, P: 5 (1991) ("Southern California
   Broadcasting").

   47 U.S.C. S: 503(b); 47 C.F.R. S: 1.80(f).

   See, e.g., SBC Communications, Inc., Forfeiture Order, 17 FCC Rcd. 7589,
   7591, P: 4 (2002).

   See 47 U.S.C. 214(a); see also 47 C.F.R. S:S: 63.03, 63.04.

   47 U.S.C. S: 503(b)(2)(E).

   See 47 C.F.R. S: 1.80; Forfeiture Policy Statement, 12 FCC Rcd. 17087,
   17113 (1997).

   47 U.S.C. S: 503(b).

   47 C.F.R. S:S: 0.111, 0.311, 0.314, 1.80.

   47 U.S.C. S: 214; 47 C.F.R. S:S: 63.03, 63.04.

   See 47 C.F.R.  S:S: 1.80(f)(3), 1.16.

   See 47 C.F.R.  S: 1.1914.

   Federal Communications Commission DA 11-2012

   3

   Federal Communications Commission DA 11-2012