Click here for Adobe Acrobat version
Click here for Microsoft Word version

******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554




                                                )                            
                                                                             
                                                )                            
     In the Matter of                               File No. See Appendix I  
                                                )                            
     Annual CPNI Certification                      NAL/Acct. No. See        
                                                )   Appendix I               
     Omnibus Notice of Apparent Liability for                                
     Forfeiture and Order                       )   FRN: See Appendix I      
                                                                             
                                                )                            
                                                                             
                                                )                            


         OMNIBUS NOTICE OF APPARENT LIABILITY FOR FORFEITURE AND ORDER

   Adopted: February 25, 2011 Released: February 25, 2011

   By the Chief, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Omnibus Notice of Apparent Liability for Forfeiture and Order
       ("NAL"), we find that the companies listed in Appendix I ("the
       Companies"), have apparently willfully and repeatedly violated (1)
       section 64.2009(e) of the Federal Communications Commission's ("FCC"
       or "Commission") rules by failing to submit an annual customer
       proprietary network information ("CPNI") compliance certificate, and
       (2) an Enforcement Bureau ("Bureau") order by failing to provide
       certain information regarding their CPNI filings. Based upon our
       review of the facts and circumstances surrounding both apparent
       violations, we find that the Companies are each apparently liable for
       a monetary forfeiture in the amount of $29,000. Furthermore, we direct
       the Companies to file the reports required under section 64.2009(e) of
       the Commission's rules that were due March 1, 2009, and March 1, 2010.

   II. BACKGROUND

    2. Section 222 of the Act 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. The rules require, among other things, that
       carriers and entities providing interconnected
       Voice-over-Internet-Protocol service establish and maintain systems
       designed to ensure that they adequately protect their subscribers'
       CPNI and file with the Commission annually, on or before March 1, a
       certification of their compliance with the CPNI rules.

    3. According to publicly available information, each of the Companies is
       a telecommunications carrier. However, based on the record before us,
       none of the Companies has filed the certification required by the
       Commission's rules.

    4. In late February 2010, as a result of the Companies' apparent
       noncompliance with the certification filing requirement for calendar
       year 2008 (due March 1, 2009), the Bureau sent each company a letter
       advising it of its noncompliance, and directing each "either to
       provide evidence of its timely filing of the 2008 report, or to file
       its CPNI compliance certification for calendar year 2008 within 30
       days of the date of this letter." The letter warned that "[f]ailure to
       comply with this directive may result in monetary penalties." Based on
       the record before us, none of the Companies complied with this
       directive.

    5. The letter also reminded each of the Companies about the then-upcoming
       certification filing requirement for calendar year 2009 (due March 1,
       2010), and also warned that "violations of this upcoming filing
       requirement may result in sanctions including monetary penalties."
       Once again, however, based on the record before us, none of the
       Companies filed a certification for calendar year 2009.

   III. DISCUSSION

    6. The Companies have apparently violated section 64.2009(e) of the
       Commission's rules by failing to file the required compliance
       certifications for both 2008 and 2009 calendar years, and have
       apparently violated a Bureau order by failing to provide certain
       information. The Act provides the Commission with broad power to
       compel carriers to provide "full and complete information necessary to
       enable the Commission to perform the duties and carry out the objects
       for which it was created," and to "issue such orders, not inconsistent
       with this [Act], as may be necessary in the execution of its
       functions." Given the purpose of section 222 of the Act in protecting
       CPNI, and the Commission's implementing rules, the Bureau's order to
       the Companies to produce information about their 2008 certifications
       is an order the Commission or its delegate is empowered to issue.

    7. Section 503(b) of the Communications Act authorizes the Commission to
       assess a forfeiture against a common carrier of up to $150,000 for
       each violation of the Act or of any rule, regulation, or order issued
       by the Commission under the Act. The Commission may assess this
       penalty if it determines that the carrier's noncompliance is "willful
       or repeated." For a violation to be willful, it need not be
       intentional. In exercising our forfeiture authority, we are required
       to take into account "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." The Commission has established
       base forfeitures for certain violations in its guidelines, but retains
       discretion to set the actual amount to impose on a case-by-case basis.

    8. With respect to determining the forfeiture for the Companies'
       violation of the Commission's CPNI rules, we note that the Bureau has
       proposed a penalty of $20,000 for failure to file a CPNI certification
       in a given calendar year, and has proposed a fine of $25,000 for a
       repeat violation, e.g., when the Commission has previously taken some
       form of enforcement action, such as issuing an admonishment or a
       citation, against the violator. Against this backdrop, we propose a
       forfeiture of $25,000 against each of the Companies at issue in this
       NAL. While we have not previously issued a citation, admonishment, or
       NAL against any of them for a violation of the Commission's CPNI
       rules, we have advised each of the Companies, through the letters we
       sent in early 2010, that they appeared to be in noncompliance with our
       rules for calendar year 2008, and we reminded them of the
       then-upcoming filing requirement for calendar year 2009. Further,
       notwithstanding the section 503(b)(6) one-year statute of limitations
       for assessing forfeitures, we are permitted in this NAL to consider
       the Companies' failure to file the certification required for calendar
       year 2008 (due March 1, 2009) for two different reasons. First,
       section 503(b)(2)(E) not only permits, but indeed requires, us to
       consider an entity's past violations in determining a forfeiture
       penalty: "the Commission or its designee shall take into account ...
       with respect to the violator, any history of prior offenses...."
       Second, in a number of recent actions, the Commission has held that
       the failure to file forms is a continuing violation until cured, i.e.,
       the Companies at issue in this NAL continue to violate the
       certification filing requirement for 2008 until they file the
       certification. Accordingly, we find that an adjustment upward from the
       $20,000 forfeiture we have proposed for failure to file a CPNI
       certification is therefore warranted.

    9. With respect to determining the forfeiture for the Companies'
       violation of a Commission order to provide information, we note that
       the Commission's base forfeitures for failing to respond to Commission
       communications is $4,000. Based on each of the Companies' failure to
       respond to the Bureau's letter containing the order to provide
       information, we believe that an additional $4,000 forfeiture on top of
       the $25,000 for failure to file a certification is appropriate.

   10. Accordingly, we propose a forfeiture of $29,000 against each of the
       Companies. We further order each of the Companies to file the
       certifications required by section 64.2009(e) of the Commission's
       rules within 30 days of the date of this NAL. Failure to file such
       certifications may result in further enforcement actions by the
       Bureau.

   IV. CONCLUSION

   11. We have determined that the Companies set forth in Appendix I of this
       NAL and Order have apparently willfully or repeatedly violated section
       64.2009(e) of the Commission's rules and have apparently willfully or
       repeatedly violated a Bureau order by failing to provide certain
       information. We find each of the Companies apparently liable for a
       forfeiture of $29,000.

   V. ORDERING CLAUSES

   12. Accordingly, IT IS ORDERED THAT, pursuant to section 503(b) of the
       Act, section 1.80 of the Commission's rules, and authority delegated
       by sections 0.111 and 0.311 of the Commission's rules, each Company
       listed in Appendix I of this Order is hereby NOTIFIED of their
       APPARANT LIABLILITY FOR A MONETARY FORFEITURE in the amount of twenty
       nine thousand dollars ($29,000) each for willfully and repeatedly
       violating section 64.2009(e) of the Commission's rules by failing to
       submit annual compliance certificates, and willfully and repeatedly
       violating a Bureau order by failing to provide certain information.

   13. IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of the
       Commission's rules, within thirty (30) days of the release date of
       this Notice of Apparent Liability for Forfeiture and Order, each of
       the Companies listed in Appendix I of this Order SHALL PAY the full
       amount of the proposed forfeiture or SHALL FILE a written statement
       seeking reduction or cancellation of the proposed forfeiture.

   14. IT IS FURTHER ORDERED THAT, pursuant to sections 4(i) and 4(j) of the
       Act and section 64.2009(e) of the Commission's rules, the companies in
       Appendix I SHALL SUBMIT the reports required under section 64.2009(e)
       of the Commission's rules that were due March 1, 2009, and March 1,
       2010 within thirty (30) days of the release date of this Notice of
       Apparent Liability for Forfeiture and Order. The report must be mailed
       to the Office of the Secretary, Federal Communications Commission, 445
       12th Street, S.W., Washington, D.C. 20554, ATTN: Enforcement Bureau -
       Telecommunications Consumers Division, and must include the NAL/Acct.
       No. referenced in the caption. A copy of the report must also be
       emailed to Richard A. Hindman at Richard.Hindman@fcc.gov and Kimberly
       Wild at Kimberly.Wild@fcc.gov.

   15. 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/Account Number and FRN Number referenced
       in Attachment I. 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). The Companies will
       also send electronic notification on the date said payment is made to
       johnny.drake@fcc.gov. Requests for full payment under an installment
       plan should be sent to:  Chief Financial Officer -- Financial
       Operations, 445 12th Street, S.W., Room 1-A625, Washington, D.C. 
       20554.   Please contact the Financial Operations Group Help Desk at
       1-877-480-3201 or Email: ARINQUIRIES@fcc.gov with any questions
       regarding payment procedures.

   16. The response, if any, must be mailed both to: Marlene H. Dortch,
       Secretary, Federal Communications Commission, 445 12th Street, SW,
       Washington, DC 20554, ATTN: Enforcement Bureau - Telecommunications
       Consumers Division; and to Richard A. Hindman, Division Chief,
       Telecommunications Consumers Division, Enforcement Bureau, Federal
       Communications Commission, 445 12th Street, SW, Washington, DC 20554,
       and must include the NAL/Acct. No. referenced in the caption.
       Documents sent by overnight mail (other than United States Postal
       Service Express Mail) must be addressed to: Marlene H. Dortch,
       Secretary, Federal Communications Commission, Office of the Secretary,
       9300 East Hampton Drive, Capitol Heights, MD 20743. Hand or
       messenger-delivered mail should be directed, without envelopes, to:
       Marlene H. Dortch, Secretary, Federal Communications Commission,
       Office of the Secretary, 445 12th Street, SW, Washington, DC 20554
       (deliveries accepted Monday through Friday 8:00 a.m. to 7:00 p.m.
       only). See www.fcc.gov/osec/guidelines.html for further instructions
       on FCC filing addresses.

   17. 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; 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.

   18. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture and Order shall be sent by Certified Mail Return
       Receipt Requested and First Class Mail to the Companies' addresses of
       record.

   FEDERAL COMMUNICATIONS COMMISSION

   P. Michele Ellison

   Chief, Enforcement Bureau APPENDIX I


    Case Name               EB File Number FRN        Date Sent NAL Acct     
                                                                Number       

    A2Z Telecom, Inc.       EB-10-TC-022   0017898669 2/26/2010 201132170014 

    Civicom, Inc.           EB-10-TC-086   0018221515 2/25/2010 201132170013 

    Communications Masters, EB-10-TC-096   0016305435 2/26/2010 201132170012 
    Inc                                                                      

    Conversenetworks, LLC   EB-10-TC-105   0018114249 2/26/2010 201132170011 

    Canopco, Inc.           EB-10-TC-073   0017960725 2/25/2010 201132170010 

    EnterConference         EB-10-TC-138   0018083949 2/25/2010 201132170009 

    ESLITE Networks, LLC    EB-10-TC-144   0017665217 2/25/2010 201132170008 

    Jahan Telecommunication EB-10-TC-194   0020537387 2/26/2010 201132170007 

    Owtel, Inc.             EB-10-TC-248   0016273583 2/26/2010 201132170006 

    ReadyTalk               EB-10-TC-278   0020537395 2/26/2010 201132170005 


   See 47 C.F.R. S: 64.2009(e); 47 U.S.C. S: 403.

   See Appendix I listing the dates that the inquiries were sent to the
   Companies.

   See 47 U.S.C S: 222.

   47 C.F.R. S:S: 64.2001-2011. Section 64.2003(o) of the rules defines
   "telecommunications carrier" to include a provider of
   Voice-over-Internet-Protocol service.

   See 47 C.F.R. S: 64.2009(e).  See also Enforcement Advisory No. 2011-02,
   DA 11-159 (rel. January 28, 2011); Enforcement Advisory No. 2010-01, DA
   10-91 (rel. January 15, 2010).

   See, e.g., Letter to A2Z Telecom, Inc. from Colleen Heitkamp, Chief,
   Telecommunications Consumers Division, Enforcement Bureau, Federal
   Communications Commission mailed February 26, 2010.

   Id.

   Id.

   47 U.S.C. S:S: 154(i), 218.

   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 of the Commission's Rules, Order, 12 FCC Rcd 1038
   (1997)(inflation adjustment to $100,000/$1,100,000); Amendment of Section
   1.80(b) of the Commission's Rules and Adjustment of Forfeiture Maxima to
   Reflect Inflation, Order, 15 FCC Rcd 18,221 (2000)(inflation adjustment to
   $120,000/$1,200,000); ); Amendment of Section 1.80 of the Commission's
   Rules and Adjustment of Forfeiture Maxima to Reflect Inflation, Order, 23
   FCC Rcd 9845 (2008) (inflation adjustment to $150,000/$1,500,000)). See
   also FCC Enforcement Advisory, DA 11-159 (rel. January 28, 2011).

   See 47 U.S.C. S: 503(b)(1)(B).

   Southern California Broadcasting Co., 6 FCC Rcd 4387, 4388 (1991).

   See 47 U.S.C. S: 503(b)(2)(E); see also The Commission's Forfeiture Policy
   Statement and Amendment of Section 1.80 of the Commission's Rules, 12 FCC
   Rcd 17087, 17100-17101 (1997) ("Forfeiture Policy Statement"); recon.
   denied, 15 FCC Rcd 303 (1999).

   Forfeiture Policy Statement, 12 FCC Rcd 17098-99, P: 22.

   Annual CPNI Certification, Omnibus Notice of Apparent Liability for
   Forfeiture, 24 FCC Rcd 2299 (Enf. Bur. 2009).

   For the annual CPNI certifications for calendar year 2008, the Bureau
   issued NALs in the amount of $25,000 against the carriers that failed to
   file for both calendar year 2007 and 2008. See Omnibus Notice of Apparent
   Liability for Forfeiture, 25 FCC Rcd 1790 (Enf. Bur. 2010).

   47 U.S.C. S: 503(b)(6).

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

   Compass Global, Inc., 23 FCC Rcd 6125, 6139 (2008); Telrite Corp., 23 FCC
   Rcd 7231, 7244 (2008); VCI Co., 22 FCC Rcd 15933, 15940 (2007).

   See 47 C.F.R. S: 1.80(b)(4).

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

   47 U.S.C. S: 1.80.

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

   47 C.F.R. S: 1.80.

   (Continued from previous page)

   (continued....)

   Federal Communications Commission DA 11-371

   2

   2

   Federal Communications Commission DA 11-371