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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
File No. EB-08-IH-1364
In the Matter of )
NAL/Acct. No. 201132080025
ALLEGIANCE COMMUNICATIONS, LLC )
FRN 0010267862
)
))
ORDER
Adopted: April 14, 2011 Released: April 14, 2011
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and Allegiance
Communications, LLC ("Allegiance" or the "Company"). The Consent
Decree terminates an investigation by the Bureau against Allegiance
for possible violations of sections 1.1157, 52.17, 52.32, 54.706,
54.711, 64.604, and 64.1195 of the Commission's rules, concerning the
payment of annual regulatory fees; contributions to the Universal
Service Fund ("USF") and Telecommunications Relay Services ("TRS")
Fund; contributions to cost-recovery mechanisms for North American
Numbering Plan ("NANP") and Local Number Portability ("LNP")
administration; and the submission of information as set forth on the
Telecommunications Reporting Worksheets (i.e., FCC Forms 499-A and
499-Q).
2. The Bureau and Allegiance have negotiated the terms of a Consent
Decree that resolves this matter. A copy of the Consent Decree is
attached hereto and incorporated herein 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 investigation.
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 Allegiance 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 section 4(i) of the
Communications Act of 1934, as amended (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 investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by certified mail, return receipt requested, to Mr.
William Haggarty, Chief Executive Officer, Allegiance Communications,
LLC, 1819 Airport Drive, Shawnee, Oklahoma, 74804.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
File No. EB-08-IH-1364
In the Matter of )
NAL/Acct. No. 201132080025
ALLEGIANCE COMMUNICATIONS, LLC )
FRN 0010267862
)
))
CONSENT DECREE
1. The Enforcement Bureau ("Bureau") and Allegiance Communications, LLC
("Allegiance" or the "Company"), by their authorized representatives,
hereby enter into this Consent Decree for the purpose of terminating
the Bureau's investigation into whether the Company violated sections
1.1157, 52.17, 52.32, 54.706, 54.711, 64.604, and 64.1195 of the
Commission's rules, concerning the payment of annual regulatory fees;
contributions to the Universal Service Fund ("USF") and
Telecommunications Relay Services ("TRS") Fund; contributions to
cost-recovery mechanisms for North American Numbering Plan ("NANP")
and Local Number Portability ("LNP") administration; and the
submission of information as set forth on the Telecommunications
Reporting Worksheets (i.e., FCC Forms 499-A and 499-Q).
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. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
c. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
d. "Effective Date" means the date on which the Commission releases the
Adopting Order.
e. "Federal Regulatory Reporting and Contribution Compliance Plan" means
the program described in this Consent Decree at paragraph 14.
f. "Investigation" means the investigation commenced by the Bureau's July
30, 2008 letter of inquiry regarding whether Allegiance violated
sections 1.1157, 52.17, 52.32, 54.706, 54.711, 64.604, and 64.1195 of
the Commission's rules, concerning the payment of annual regulatory
fees; contributions to the federal USF and TRS Fund; contributions to
cost-recovery mechanisms for NANP and LNP administration; and the
submission of information as set forth on the Telecommunications
Reporting Worksheets (i.e., FCC Forms 499-A and 499-Q).
g. "Allegiance Communications, LLC" or "Allegiance" means Allegiance
Communications, LLC, and its predecessors-in-interest and
successors-in-interest.
h. "Order" or "Adopting Order" means an Order of the Bureau adopting the
terms of this Consent Decree without change, addition, deletion, or
modification.
i. "Parties" means Allegiance Communications, LLC, and the Bureau, and
each is a "Party."
j. "Rules" means the Commission's regulations found in Title 47 of the
Federal Regulations.
k. "Interconnected VoIP service" has the meaning set forth at 47 C.F.R.
S: 9.3.
II. BACKGROUND
3. Pursuant to section 254(d) of the Act and sections 54.706 and 54.711
of the Rules, certain providers of interstate telecommunications,
including companies providing interconnected VoIP service, are
required to file annual and quarterly Telecommunications Reporting
Worksheets (FCC Form 499-A and FCC Form 499-Q) and contribute to the
federal USF.
4. Pursuant to section 251(e) of the Act and sections 52.17 and 52.32 of
the Rules, certain companies, including those providing interconnected
VoIP service, are required to contribute to the costs of establishing
numbering administration and local number portability.
5. Pursuant to section 225(b)(1) of the Act and the Commission's 2007
order extending disability access requirements to providers of
interconnected Voice over Internet Protocol (VoIP) services,
interconnected VoIP service providers are required to contribute to
the TRS Fund.
6. Pursuant to sections 1.1154 and 1.1157 of the Rules, interstate
telephone service providers, including those providing interconnected
VoIP service, are required to pay regulatory fees.
7. Pursuant to the Commission's 2006 Universal Service Contribution
Methodology order, interconnected VoIP providers are required to
register with the Commission and designate an agent for service of
process pursuant to section 4(i) of the Act.
8. Allegiance offers interstate interconnected VoIP telecommunications
services and is subject to the requirements discussed in paragraphs 3
through 7 above.
9. On July 30, 2008, the Bureau issued a letter of inquiry to Allegiance.
The LOI directed Allegiance, among other things, to submit a sworn
written response to a series of questions relating to whether
Allegiance violated the Rules concerning the payment of annual
regulatory fees; contributions to the USF and TRS Fund; contributions
to cost-recovery mechanisms for NANP and LNP administration; the
reporting of information as set forth on the Telecommunications
Reporting Worksheets; and the submission of registration information
with the Commission. Allegiance responded to the LOI on September 4,
2008. As of March 25, 2011, Allegiance has paid all invoiced amounts
to the USF, TRS Fund, cost recovery mechanisms for NANP and LNP
administration, and regulatory fees, and has made the required filings
with respect to the regulatory reporting obligations discussed above.
III. TERMS OF AGREEMENT
10. 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.
11. Jurisdiction. Allegiance 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.
12. Effective Date: Violations. The Parties agree that this Consent Decree
shall become effective on the Effective Date. 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 Commission
Order.
13. 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 the
Investigation. In consideration for the termination of the
Investigation, Allegiance 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 the 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 Allegiance concerning the matters
that were the subjects of the Investigation. The Bureau also agrees
that it will not use the facts developed in the 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 Allegiance
with respect to Allegiance's basic qualifications, including its
character qualifications, to be a Commission licensee or authorized
common carrier.
14. Federal Regulatory Reporting and Contribution Compliance Plan. For
purposes of settling the matter set forth herein, Allegiance agrees,
within 30 days of the Effective Date, to create and maintain a
Compliance Plan related to future compliance with the Act and the
Rules and orders concerning federal regulatory reporting and
contribution obligations. The Plan will include, at a minimum, the
following components:
a. Compliance Manual. Allegiance shall create, maintain and update a
manual to ensure future compliance with Allegiance's obligations
concerning the payment of annual regulatory fees; contributions to the
USF and TRS Fund; contributions to cost-recovery mechanisms for NANP
and LNP administration; and the submission of information as set forth
on the Telecommunications Reporting Worksheets (the "federal
regulatory reporting and contribution obligations"). Allegiance
personnel who have responsibility for fulfilling Allegiance's federal
regulatory reporting and contribution obligations shall follow the
procedures contained in the Compliance Manual. The Compliance Manual
shall, among other things, describe the Rules and requirements as they
apply to Allegiance regarding Allegiance's federal regulatory
reporting and contribution obligations. The Compliance Manual shall
set forth a schedule of filing and payment dates associated with
annual regulatory fees; contributions to the USF and TRS Fund;
contributions to cost-recovery mechanisms for NANP and LNP
administration; and the submission of information as set forth on the
Telecommunications Reporting Worksheets. Allegiance shall create
compliance notifications that alert Allegiance personnel to upcoming
filing and payment dates. The Compliance Manual shall require
personnel to contact Allegiance's Compliance Officer, and if
appropriate regulatory legal counsel, with any questions or concerns
that arise with respect to Allegiance's federal regulatory reporting
and contribution obligations.
b. Compliance Training Program. Within 60 days of the Effective Date,
Allegiance will implement and conduct a training program for employees
who are responsible for fulfilling its federal regulatory reporting
and contribution obligations, as described in paragraph 14(a).
Allegiance shall ensure that training and compliance materials
regarding the federal regulatory reporting and contribution
obligations are provided to all of its employees who are responsible
for fulfilling those obligations. New employees, or reassigned
employees who take on such responsibilities, will be provided such
training within 30 days of hiring or reassignment.
c. Compliance Officer. Allegiance shall designate a Compliance Officer
within thirty (30) days of the Effective Date. The Compliance Officer
shall be responsible for administering the Compliance Plan and shall
be the individual whose business unit is most directly responsible for
fulfilling Allegiance's federal regulatory reporting and contribution
obligations.
d. Review and Monitoring. Allegiance shall review the Compliance Manual
and Compliance Training Program to ensure that they are maintained in
the proper manner and continue to address future compliance with
Allegiance's federal regulatory reporting and contribution
obligations. Allegiance shall update the Compliance Manual and
Compliance Training Program as necessary and appropriate, and in the
event of changes and/or additions to the relevant Rules and orders
shall update the Compliance Manual and Compliance Training Program
within thirty (30) days after the effective date of any such change or
addition.
e. Compliance Reports. Allegiance shall file Compliance Reports with the
Commission ninety
(90) days after the Effective Date, twelve (12) months after the Effective
Date, and twenty-four (24) months after the Effective Date. Allegiance
also shall disclose any failure to comply with the terms and conditions of
this Consent Decree, or with the federal regulatory reporting and
contribution obligations described in subparagraph (a) above, within
fifteen (15) business days after discovery of such failure to comply.
i. Each Compliance Report shall include assertions by Allegiance that it:
1. has established operating procedures intended to ensure compliance
with the terms and conditions of this Consent Decree and with the
relevant sections of the Rules, together with an accompanying
statement explaining the basis for the assertion;
2. has been utilizing these procedures for the entire term of the
Compliance Plan;
3. has disclosed any known instances of non-compliance with this
Compliance Plan discovered during the reporting period;
4. has taken steps to identify any failures to timely fulfill its
federal regulatory reporting and contribution obligations; and
5. has addressed any instances of non-compliance and taken steps to
remedy the cause thereof.
ii. Each Compliance Report must be supported by the declaration of an
officer as an agent of and on behalf of Allegiance with personal
knowledge of the representations provided in the report, verifying the
truth and accuracy of the information. The declaration must comply
with section 1.16 and be subscribed to as true under penalty of
perjury in substantially the same form set forth therein.
iii. Any instance of non-compliance with the Compliance Plan disclosed in
the report shall provide:
1. a detailed explanation of the non-compliance;
2. the steps Allegiance has taken to remedy the non-compliance and
ensure future compliance; and
3. the schedule on which the proposed remedial actions will be
taken.
f. Filing. All Compliance Reports and other disclosures required by this
Consent Decree shall be submitted to Theresa Z. Cavanaugh, Acting
Chief, Investigations & Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Room 4-C330,
Washington, D.C. 20554. Allegiance must also transmit a copy of the
reports via email to Terry.Cavanaugh@fcc.gov.
15. Termination Date. Unless stated otherwise, the requirements of the
Federal Regulatory Reporting and Contribution Compliance Plan will
expire 24 months after the Effective Date.
16. 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 Allegiance 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 Allegiance of the Act, the Rules, or the
Order.
17. Voluntary Contribution. Allegiance agrees that it will make a
voluntary contribution to the United States Treasury in the amount of
$20,000, in two payments of $10,000 each. The first payment shall be
made within 10 days after the Effective Date of the Adopting Order,
and the second payment shall be made within 12 months after the
Effective Date of the Adopting Order. The payments 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 the 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. Allegiance will
also send electronic notification on the date said payments are made
to Mindy.Littell@fcc.gov.
18. Waivers. Allegiance 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 Order adopting this Consent Decree, provided the Commission
issues an Order adopting the Consent Decree without change, addition,
modification, or deletion. Allegiance 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 Allegiance nor the Commission shall contest
the validity of the Consent Decree or the Adopting Order, and
Allegiance shall waive any statutory right to a trial de novo.
Allegiance hereby agrees to waive any claims it may otherwise have
under the Equal Access to Justice Act, relating to the matters
addressed in this Consent Decree.
19. 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 Allegiance does not expressly
consent) that provision will be superseded by such Rule or order.
20. Successors and Assigns. Allegiance agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
21. Invalidity. In the event that this Consent Decree is rendered invalid
by a court of competent jurisdiction, it shall become null and void,
and may not be used in any manner in any legal proceeding.
22. 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 Rules and orders.
23. Modifications. This Consent Decree cannot be modified without the
advance written consent of both parties.
24. 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.
25. Authorized Representative. Each Party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
26. 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.
By: _________________________________ By: __________________________
P. Michele Ellison William Haggarty
Chief, Enforcement Bureau Chief Executive Officer,
Federal Communications Commission Allegiance Communications, LLC
Date: ________________________________ Date: ________________________
47 C.F.R. S:S: 1.1157, 52.17, 52.32, 54.706, 54.711, 64.604, and 64.1195.
47 U.S.C. S: 154(i).
47 C.F.R. S:S: 0.111, 0.311.
47 C.F.R. S:S: 1.1157, 52.17, 52.32, 54.706, 54.711, 64.604, and 64.1195.
See Allegiance Communications, LLC, EB-08-IH-1364, Letter from Trent B.
Harkrader, Deputy Chief, Investigations & Hearings Division, Enforcement
Bureau, Federal Communications Commission to William Haggarty, Chief
Executive Officer, Allegiance Communications, LLC (July 30, 2008) ("LOI").
47 C.F.R. S:S: 1.1157, 52.17, 52.32, 54.706, 54.711, 64.604, and 64.1195.
47 C.F.R. S: 9.3.
47 U.S.C. S: 254(d); 47 C.F.R. S:S: 54.706, 54.711. See also 47 C.F.R. S:
54.713 (governing contributors' failure to report or to contribute).
47 C.F.R. S: 52.17(c) and 52.32(e) (including interconnected VoIP
providers as defined in section 52.21(h) of the Commission's rules in the
terms "telecommunications carrier" or "carrier" for purposes of numbering
administration and number portability).
47 U.S.C. S: 251(e); 47 C.F.R. S:S: 52.17, 52.32.
47 U.S.C. S: 225(b)(1); Implementation of Sections 255 and 251(a)(2) of
the Communications Act of 1934, as Enacted by the Telecommunications Act
of 1996: Access to Telecommunications Service, Telecommunications
Equipment and Customer Premises Equipment by Persons with Disabilities;
Telecommunications Relay Services and Speech-to- Speech Services for
Individuals With Hearing and Speech Disabilities, Report and Order, 22 FCC
Rcd 11275, 11291-97, P:P: 32- 43 (2007).
47 U.S.C. S: 9(a)(1); 47 C.F.R. S:S: 1.1154, 1.1157 (setting forth
regulatory fees and method of payment applicable to "Interstate Telephone
Service Providers" according to their interstate and international
end-user revenues as reported on FCC Form 499-A). See also Assessment and
Collection of Regulatory Fees for Fiscal Year 2007, 22 FCC Rcd 15712,
15717-18 (2007) (extending regulatory fee obligations to VoIP service
providers).
Universal Service Contribution Methodology, 21 FCC Rcd 7518, 7548 P:P:
60-61 (2006), aff'd in part, vacated in part, Vonage Holdings Corp. v.
FCC, 489 F.3d 1232, 1244 (D.C. Cir. 2007); 47 U.S.C. 154(i) (2006
Contribution Methodology Order).
See LOI, n.2, supra.
See Letter from Jane Bremer and Stephen Ross, Bremer Law, P.C., to Mindy
Littell, Attorney Advisor, Investigations & Hearings Division, Enforcement
Bureau, FCC, dated September 2, 2008 ("LOI Response").
5 U.S.C. S: 504; 47 C.F.R. Part 1, Subpart K.
Federal Communications Commission DA 11-666
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