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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                         )                               
                                                                         
                                         )                               
                                                                         
                                         )                               
     In the Matter of                        File No. EB-09-IH-1972      
                                         )                               
     Kajeet, Inc.                            NAL/Acct. No. 201232080007  
                                         )                               
     and                                     FRN 0019614908              
                                         )                               
     Kajeet/Airlink, LLC                     NAL/Acct. No. 201232080008  
                                         )                               
     Apparent Liability for Forfeiture       FRN 0018691477              
                                         )                               
                                                                         
                                         )                               
                                                                         
                                         )                               


             NOTICE OF APPARENT LIABILITY FOR FORFEITURE AND ORDER

   Adopted: December 5, 2011 Released: December 5, 2011

   By the Commission:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture and Order ("NAL"),
       we find that Kajeet, Inc. ("Kajeet") and its wholly-owned subsidiary
       Kajeet/Airlink, LLC ("Kajeet/Airlink") (collectively, the "Companies")
       apparently violated sections 225(b)(1), 251(e)(2), and 254(d) of the
       Communications Act of 1934, as amended (the "Act"), and sections
       52.32(a), 54.706(a), and 64.604(c)(5)(iii)(A) of the Commission's
       rules, by apparently willfully and repeatedly failing to contribute
       fully and timely to the Universal Service Fund ("USF"), the
       Telecommunications Relay Service ("TRS") Fund, and the Local Number
       Portability ("LNP") cost recovery mechanism. In addition, we find that
       Kajeet/Airlink apparently violated section 214 of the Act and section
       63.24 of the Commission's rules, by apparently willfully consummating
       an unauthorized assignment of an international section 214
       authorization. Based on our review of the facts and circumstances
       surrounding this matter, and for the reasons discussed below, we find
       that Kajeet is apparently liable for a total forfeiture of four
       hundred sixty thousand, one hundred eighty-six dollars ($460,186) and
       Kajeet/Airlink is apparently liable for a total forfeiture of five
       hundred two thousand, six hundred forty-two dollars ($502,642).

    2. We also order the Companies to submit within thirty (30) calendar days
       a report-supported by a declaration under penalty of perjury from a
       corporate officer-setting forth in detail their plans to come into
       compliance with the payment obligations discussed herein and
       describing the steps Kajeet/Airlink has taken to come into compliance
       with the requirements of section 214 of the Act and section 63.24 of
       the Commission's rules.

   II. BACKGROUND

    3. The Act codifies Congress's historic commitment to promote universal
       telecommunications 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 on 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"), invoices for USF
       contributions that have become over 90 days delinquent are transferred
       to the Commission for further action to collect the outstanding debt.
       A provider's failure to pay its share into the USF skews the playing
       field by giving the provider an economic advantage over its
       competitors, who must then shoulder more than their fair share of the
       costs of universal service.

    4. Section 225(b)(1) of the Act, which codifies Title IV of the Americans
       with Disabilities Act of 1990, directs the Commission to "ensure that
       interstate and intrastate telecommunications relay services are
       available, to the extent possible and in the most efficient manner, to
       hearing-impaired and speech-impaired individuals in the United
       States." To that end, the Commission established the TRS Fund to
       reimburse TRS providers for the costs of providing interstate
       telecommunications relay services. Pursuant to sections
       64.604(c)(5)(iii)(A) and 64.601(b) of the Commission's rules, every
       provider of interstate telecommunications services and certain other
       providers of telecommunications must contribute to the TRS Fund based
       on their interstate end-user revenues. The TRS Fund administrator uses
       the annual filings to determine each contributor's TRS Fund
       contribution amount. The TRS Fund administrator bills carriers each
       July based on their annual revenues.

    5. In addition, section 251(e)(1) of the Act directs the Commission to
       oversee the administration of telecommunications numbering to ensure
       the availability of telephone numbers on an equitable basis. Section
       251(e)(2) of the Act requires that "[t]he cost of establishing
       telecommunications numbering administration arrangements ... shall be
       borne by all telecommunications carriers on a competitively neutral
       basis as determined by the Commission." In carrying out this statutory
       directive, the Commission adopted section 52.32 of its rules, which
       requires, among other things, that all telecommunications carriers
       contribute to the costs of local number portability on the basis of
       their end-user telecommunications revenues for the prior calendar
       year.

    6. The Commission has established specific procedures for the
       administration of the USF, TRS, local number portability, 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, TRS Fund, 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 pay their contribution invoices in a timely manner, and
       the Commission's rules explicitly warn contributors that failure to
       file forms or submit payments potentially subjects them to enforcement
       action.

    7. Section 214(a) of the Act prohibits any carrier from constructing,
       extending, 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, or operation of the line. In accordance with
       sections 63.12 and 63.18 of the Commission's rules, any international
       carrier seeking authorization for such activities pursuant to section
       214 of the Act, including an assignment of an authorization, must
       obtain approval from the Commission. In particular, pursuant to
       section 63.24 of the Commission's rules, the assignment of an
       international section 214 authorization requires application to, and
       prior approval from, the Commission. Section 63.24(e) requires that
       the proposed assignee apply to the Commission for approval prior to
       the consummation of the proposed assignment. The Commission employs a
       public interest standard under section 214(a) of the Act that involves
       the examination of the positive and negative public interest impact of
       a proposed transaction.

    8. Kajeet is a Maryland-based company that has provided
       telecommunications services since 2007. Kajeet provides prepaid
       wireless services as reseller for a nationwide wireless carrier.
       Kajeet/Airlink has provided telecommunications services since April
       2009. Kajeet/Airlink provides prepaid wireless services as a reseller
       for a nationwide wireless carrier and sells prepaid long distance
       calling cards.

    9. In July 2009, USAC referred Airlink Mobile, Inc. ("Airlink Mobile") to
       the Enforcement Bureau (the "Bureau") for potential enforcement
       action, alleging that Airlink Mobile had failed to comply with the
       Commission's USF contribution rules. On August 10, 2009, the Bureau
       issued a letter of inquiry ("LOI") to Airlink Mobile seeking
       information about its compliance with USF and other related regulatory
       obligations. Airlink Mobile did not respond to the LOI. Subsequent
       investigation revealed that Airlink Mobile was no longer in business
       and that its assets had apparently been purchased by the Companies. On
       December 10, 2009, the Bureau issued an LOI to the Companies seeking
       information about their compliance with USF and other related
       regulatory obligations and Kajeet/Airlink LLC's acquisition of certain
       assets of Airlink Mobile. The LOI Response and supplemental
       information developed through our investigation indicate that both
       Kajeet and Kajeet/Airlink failed to contribute fully and timely to the
       USF, the TRS Fund, and the LNP cost recovery mechanism. In addition,
       the LOI Response indicates that Kajeet/Airlink consummated a
       substantial assignment of an international section 214 authorization
       without prior Commission approval.

   III. DISCUSSION

   10. 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.

   11. The fundamental issues in this case are whether Kajeet and
       Kajeet/Airlink apparently violated the Act and the Commission's rules
       by willfully or repeatedly failing to make required contributions to
       the USF, TRS Fund, and LNP cost recovery mechanism, and whether
       Kajeet/Airlink apparently violated the Act and the Commission's rules
       by willfully or repeatedly failing to obtain Commission approval prior
       to consummating the assignment of an international section 214
       authorization. We answer these questions in the affirmative. As set
       forth below, we conclude that the Companies are apparently liable for
       a forfeiture for their apparent willful and repeated violations of
       sections 214, 225(b)(1), 251(e)(2), and 254(d) of the Act and sections
       52.32(a), 54.706(a), 63.24, and 64.604(c)(5)(iii)(A) of the
       Commission's rules. Based on the facts and circumstances before us, we
       therefore conclude that Kajeet is apparently liable for a total
       forfeiture of four hundred sixty thousand, one hundred eighty-six
       dollars ($460,186) and Kajeet/Airlink is apparently liable for a total
       forfeiture of five hundred two thousand, six hundred forty-two dollars
       ($502,642).

    A. Kajeet and Kajeet/Airlink Apparently Failed to Make Full and Timely
       Universal Service Fund Contributions

   12. We conclude that Kajeet and Kajeet/Airlink both apparently violated
       section 254(d) of the Act and section 54.706(a) of the Commission's
       rules by apparently 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, "resale
       of interstate services" and "prepaid calling card" services such as
       those provided by Kajeet and Kajeet/Airlink. The Companies do not
       dispute that Kajeet and Kajeet/Airlink were required to make USF
       contributions at all relevant times.

   13. Kajeet made only partial payments on its USF invoice for the monthly
       payments due in May 2009, January 2010, and January 2011, and failed
       to make any of the required monthly payments due in June 2009 through
       December 2009, February 2010 through December 2010, and May through
       June 2011. As a result of its failures to pay, Kajeet maintained
       outstanding USF balances every month between May 2009 and June 2011.
       Kajeet's failure to comply fully and timely with the USF requirements
       for 23 of the last 30 months also afforded it a financial benefit and
       an economic advantage over its competitors who complied with their USF
       obligations. Based on the record developed in our investigation, we
       find that Kajeet has apparently violated section 254(d) of the Act and
       section 54.706(a) of the Commission's rules by apparently willfully
       and repeatedly failing to contribute fully and timely to the USF.

   14. Kajeet/Airlink began operating in April 2009, but did not make any USF
       contributions until December 2010. The Companies indicate in the LOI
       Response that Kajeet/Airlink "has not yet contributed to the USF, nor
       has it filed any Form 499-Qs." The Companies claim that "[d]ue to the
       severe economic turbulence of 2009, we focused on making sure this
       entity was able to operate and survive during the short time we've had
       to stabilize the customer base supported by the assets acquired by
       Kajeet/Airlink." The Companies further assert that they were in the
       process of preparing a 2010 Form 499-A for Kajeet/Airlink so that "we
       can fulfill the appropriate USAC obligations for this entity."
       According to USAC records, Kajeet/Airlink failed to file any quarterly
       Worksheets until May 2010, and did not file its 2010 annual Worksheet
       until September 21, 2010, more than five months after it was due.
       Based on the record before us, including the revenues reported in
       Kajeet/Airlink's 2010 annual Worksheet, Kajeet/Airlink would not have
       qualified for the de minimis exemption from contributing to the USF
       during 2009 and therefore should have filed quarterly Worksheets
       beginning in May 2009. Because Kajeet/Airlink failed to file any
       required Worksheets until May 2010, USAC did not begin sending it
       invoices until July 2010. Kajeet/Airlink failed to make any payments
       on its USF invoices for the monthly payments due in August 2010
       through November 2010, and made only a partial payment in December
       2010. Kajeet/Airlink also failed to make any payments on its USF
       invoices for the monthly payments due in January, March, April, and
       May 2011, and made only a partial payment in February 2011. Based on
       the record developed in our investigation, we find that Kajeet/Airlink
       has apparently violated section 254(d) of the Act and section
       54.706(a) of the Commission's rules by apparently willfully and
       repeatedly failing to contribute fully and timely to the USF.

    B. Kajeet and Kajeet/Airlink Apparently Failed To Make Full and Timely
       TRS Fund Contributions

   15. We also find that Kajeet and Kajeet/Airlink apparently violated
       section 225(b)(1) of the Act and section 64.604(c)(5)(iii)(A) of the
       Commission's rules by apparently willfully and repeatedly failing to
       contribute fully and timely to the TRS Fund. As interstate
       telecommunications carriers, Kajeet and Kajeet/Airlink were obligated
       to contribute to the TRS Fund on the basis of the interstate end-user
       telecommunications revenues reported on their annual Worksheets. A
       carrier's contribution to the TRS Fund is based on its subject
       revenues for the prior calendar year and a contribution factor
       determined annually by the Commission. Subject carriers must make TRS
       contributions on an annual basis, with certain exceptions that are not
       applicable to Kajeet and Kajeet/Airlink.

   16. The record demonstrates that Kajeet and Kajeet/Airlink failed to make
       full and timely contributions to the TRS Fund in 2010. The TRS Fund
       administrator invoiced Kajeet for an adjustment to its 2009 TRS Fund
       contribution on May 4, 2010, with a due date of May 26, 2010, and
       invoiced Kajeet for its 2010 TRS Fund contribution on July 4, 2010,
       with a due date of July 26, 2010. The TRS Fund administrator invoiced
       Kajeet/Airlink for its 2010 TRS Fund contribution on November 4, 2010,
       with a due date of November 26, 2010. As of January 10, 2011, however,
       neither Kajeet nor Kajeet/Airlink had made any payments toward their
       TRS obligations for 2010. Based on the record developed in our
       investigation, we find that Kajeet and Kajeet/Airlink have apparently
       violated section 225(b)(1) of the Act and section 64.604(c)(5)(iii)(A)
       of the Commission's rules by apparently willfully and repeatedly
       failing to make required TRS Fund contributions in 2010.

    C. Kajeet and Kajeet/Airlink Apparently Failed To Make Full and Timely
       Contributions to the LNP Cost Recovery Mechanism

   17. We find that Kajeet and Kajeet/Airlink apparently violated section
       251(e)(2) of the Act and section 52.32(a) of the Commission's rules by
       apparently willfully and repeatedly failing to contribute fully and
       timely to the LNP cost recovery mechanism. As telecommunications
       carriers, Kajeet and Kajeet/Airlink were obligated to contribute to
       the LNP cost recovery mechanism on the basis of the end-user
       telecommunications revenues reported on their annual Worksheets.

   18. The record demonstrates that Kajeet and Kajeet/Airlink failed to
       contribute fully and timely to the LNP cost recovery mechanism in 2010
       and 2011. The LNP administrator invoiced Kajeet monthly throughout
       2010 and 2011 and began sending Kajeet/Airlink monthly invoices in
       October 2010. As of October 26, 2011, however, Kajeet had not made any
       payments towards its LNP administration obligations for 2010 or 2011.
       Kajeet/Airlink did not make any payments towards its LNP
       administration obligations for 2010 until July 2011 and, as of October
       26, 2011, had not made any payments towards its LNP administration
       obligations for 2011. Based on the record developed in our
       investigation, we find that Kajeet and Kajeet/Airlink have apparently
       violated section 251(e)(2) of the Act and section 52.32(a) of the
       Commission's rules by apparently willfully and repeatedly failing to
       contribute to the LNP cost recovery mechanism in 2010 and 2011.

    D. Kajeet/Airlink Apparently Failed to Obtain Commission Approval Prior
       to Consummating the Assignment of an International Section 214
       Authorization

   19. We find that Kajeet/Airlink apparently violated section 214 of the Act
       and section 63.24 of the Commission's rules by apparently willfully
       consummating the assignment of an international section 214
       authorization without prior Commission approval. Under section 63.24
       of the Commission's rules, an assignment of an international section
       214 authorization requires application to, and approval from, the
       Commission. The proposed assignee must apply to the Commission for
       approval prior to the consummation of the proposed assignment. Based
       on the record developed in our investigation, as set forth in detail
       in the attached confidential Appendix, we find that Kajeet/Airlink has
       apparently violated section 214 of the Act and section 63.24 of the
       Commission's rules by apparently willfully failing to obtain
       Commission approval prior to consummating the assignment of an
       international section 214 authorization.

    E. Proposed Forfeitures

   20. 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.

   1. Kajeet

   21. We find that Kajeet made only partial payments to the USF in May 2009,
       January 2010, and January 2011, and failed to make any required
       monthly payments in June 2009 through December 2009, February 2010
       through December 2010, and May 2011 through June 2011. 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's 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 also
       violations that began prior to the last twelve months and continued
       during the twelve-month period preceding this NAL.

   22. As a result, we find that Kajeet is apparently liable for a forfeiture
       for apparently willfully and repeatedly failing to contribute fully
       and timely to the USF on a total of nineteen occasions between
       September 2009 and June 2011. Accordingly, we assess a $20,000
       forfeiture for each of the seventeen months in which Kajeet failed to
       remit any contribution toward its outstanding USF obligation. We also
       assess a $10,000 forfeiture for two months in which Kajeet failed to
       fully pay its required universal service contribution, as provided on
       the corresponding invoices. Thus, we find Kajeet apparently liable for
       a base forfeiture of $360,000 for its apparent willful and repeated
       failures to contribute fully and timely to the USF on nineteen
       occasions between September 2009 and June 2011. 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 $66,966
       to the base forfeiture-approximately one-half of the largest amount of
       Kajeet's unpaid USF contributions during the period at issue. We
       therefore find Kajeet apparently liable for a forfeiture of four
       hundred twenty-six thousand, nine hundred sixty-six dollars ($426,966)
       for its apparent willful and repeated failures to contribute fully and
       timely to the USF.

   23. We also find that Kajeet is apparently liable for a forfeiture for
       apparently willfully and repeatedly failing to make required TRS
       contributions in 2010. Where a provider fails to satisfy its TRS
       obligations, it thwarts the purpose for which Congress established
       section 225(b)(1) of the Act and its implementing regulations - to
       ensure that telecommunications relay services "are available to the
       extent possible and in the most efficient manner, to hearing-impaired
       and speech-impaired individuals in the United States." The Commission
       has generally established a base forfeiture amount of $10,000 for each
       instance in which a contributor fails to make required TRS
       contributions and an upward adjustment based on one-half of the
       company's approximate unpaid contributions. We assess a $10,000
       forfeiture for Kajeet's failure to pay its TRS Fund contributions in
       2010 and an upward adjustment of $3,220, approximately one-half of
       Kajeet's unpaid TRS Fund contributions. We therefore find Kajeet
       apparently liable for a forfeiture of thirteen thousand, two hundred
       twenty dollars ($13,220) for its apparent willful and repeated failure
       to contribute fully and timely to the TRS Fund.

   24. Additionally, we conclude that Kajeet is apparently liable for a
       forfeiture for apparently willfully and repeatedly failing to make
       full and timely contributions toward LNP cost recovery mechanisms in
       2010 and 2011. The failure of carriers to make required LNP
       contributions severely hampers the Commission's ability to ensure that
       the cost of establishing number portability arrangements are "borne by
       all telecommunications carriers on a competitively neutral basis" as
       Congress envisioned. The Commission has prescribed a $10,000 base
       forfeiture amount for failure to pay LNP contributions. We find Kajeet
       apparently liable for a forfeiture of twenty thousand dollars
       ($20,000) for its apparent willful and repeated failures to make full
       LNP payments in 2010 and 2011.

   2. Kajeet/Airlink

   25. Initially, we note that although Kajeet/Airlink has been providing
       telecommunications service since April 2009, it failed to file any
       quarterly Worksheets until May 2010 and filed its 2010 annual
       Worksheet, which was due April 1, 2010, more than five months late on
       September 21, 2010. A carrier's failure to file these Worksheets is
       directly linked to, and thus has serious implications for,
       administration of the USF, TRS, NANP, LNP, and regulatory fee
       programs. By failing to report its revenue, Kajeet/Airlink avoided
       making full and timely payment into these programs and unilaterally
       shifted to compliant carriers and their customers the economic costs
       associated with the programs.

   26. We find that Kajeet/Airlink failed to make any required monthly
       payments to the USF in August 2009 through November 2010, and in
       January, March, April and May 2011, and made only partial payments in
       December 2010 and February 2011. We accordingly find that
       Kajeet/Airlink is apparently liable for a forfeiture for apparently
       willfully and repeatedly failing to contribute fully and timely to the
       USF on a total of twenty-two occasions between August 2009 and May
       2011. We accordingly assess a $20,000 forfeiture for each of the
       twenty months in which Kajeet/Airlink failed to remit any contribution
       toward its outstanding USF obligation. We also assess a $10,000
       forfeiture for the two months in which Kajeet/Airlink failed to fully
       pay its required universal service contribution. Thus, we find
       Kajeet/Airlink apparently liable for a base forfeiture of $420,000 for
       its willful and repeated failures to contribute fully and timely to
       the USF on twenty-two occasions between August 2009 and May 2011. We
       also conclude that an upward adjustment to the base forfeiture
       associated with Kajeet/Airlink's failure to contribute to the USF is
       appropriate. Accordingly, taking into account all of the factors
       enumerated in section 503(b)(2)(E) of the Act, we propose an upward
       adjustment of $35,185, approximately one-half of the largest amount of
       Kajeet/Airlink's unpaid USF contributions during the period at issue.
       We therefore find Kajeet/Airlink apparently liable for a forfeiture of
       four hundred fifty-five thousand, one hundred eighty-five dollars
       ($455,185) for its apparent willful and repeated failures to
       contribute fully and timely to the USF.

   27. We also find that Kajeet/Airlink is apparently liable for a forfeiture
       for apparently willfully and repeatedly failing to make required TRS
       contributions in 2010. We assess a $10,000 forfeiture for
       Kajeet/Airlink's failure to pay its TRS Fund contributions in 2010 and
       an upward adjustment of $1,457, approximately one-half of
       Kajeet/Airlink's unpaid TRS Fund contributions. We thus find
       Kajeet/Airlink apparently liable for a forfeiture of eleven thousand,
       four hundred fifty-seven dollars ($11,457) for its apparent willful
       and repeated failure to contribute fully and timely to the TRS Fund.

   28. Furthermore, we conclude that Kajeet/Airlink is apparently liable for
       a forfeiture for apparently willfully and repeatedly failing to make
       full and timely contributions toward LNP cost recovery mechanisms in
       2010 and 2011. As noted above, the Commission has prescribed a $10,000
       base forfeiture amount for failure to pay LNP contributions. We find
       Kajeet/Airlink apparently liable for a forfeiture of twenty thousand
       dollars ($20,000) for its apparent willful and repeated failures to
       make full LNP payments in 2010 and 2011.

   29. Finally, we find that Kajeet/Airlink is apparently liable for a
       forfeiture for apparently willfully failing to obtain Commission
       approval prior to consummating the assignment of an international
       section 214 authorization. The Commission's Forfeiture Policy
       Statement and implementing rules prescribe a base forfeiture of $8,000
       for an unauthorized substantial assignment. Such forfeiture amount may
       be adjusted upward or downward depending on the existence of
       aggravating or mitigating factors. In the instant case, we have taken
       into consideration Kajeet/Airlink's failure over a period of
       approximately two years to file a corrective application. On balance
       and after applying the factors set forth in section 503(b)(2)(E) of
       the Act, we find that a forfeiture in the amount of $16,000 is
       appropriate. Accordingly, we find Kajeet/Airlink apparently liable for
       a forfeiture of sixteen thousand dollars ($16,000) for its apparent
       willful failure to obtain Commission approval prior to consummating
       the assignment of an international section 214 authorization.

   IV. CONCLUSION

   30. In light of the seriousness, duration, and scope of the apparent
       violations, we propose a total forfeiture of four hundred sixty
       thousand, one hundred eighty-six dollars ($460,186) against Kajeet,
       consisting of four hundred twenty-six thousand, nine hundred sixty-six
       dollars ($426,966) for failure to make full and timely USF
       contributions; thirteen thousand, two hundred twenty dollars ($13,220)
       for failure to make full and timely TRS contributions; and twenty
       thousand dollars ($20,000) for failure to make LNP contributions.

   31. We also propose a total forfeiture of five hundred two thousand, six
       hundred forty-two dollars ($502,642) against Kajeet/Airlink,
       consisting of four hundred fifty-five thousand, one hundred
       eighty-five dollars ($455,185) for failure to make full and timely USF
       contributions; eleven thousand, four hundred fifty-seven dollars
       ($11,457) for failure to make full and timely TRS contributions;
       twenty thousand dollars ($20,000) for failure to make LNP
       contributions; and sixteen thousand dollars ($16,000) for failure to
       obtain Commission approval prior to consummating the assignment of an
       international section 214 authorization.

   32. In addition, we order the Companies to submit within thirty (30)
       calendar days a report-supported by a declaration under penalty of
       perjury from a corporate officer-setting forth in detail their plans
       to come into compliance with the payment obligations discussed herein
       and describing the steps Kajeet/Airlink has taken to come into
       compliance with the requirements of section 214 of the Act and section
       63.24 of the Commission's rules.

   33. We caution that additional violations of the Act or the Commission's
       rules could subject the Companies to further enforcement action. Such
       action could take the form of higher monetary forfeitures, possible
       disqualification of the Companies' principals from the provision of
       any interstate common carrier services without the prior consent of
       the Commission, and/or possible revocation of the Companies' authority
       to operate.

   V. ORDERING CLAUSES

   34. ACCORDINGLY, IT IS ORDERED that, pursuant to section 503(b) of the
       Act, and section 1.80 of the Commission's rules, that Kajeet, Inc. is
       hereby NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in the
       amount of four hundred sixty thousand, one hundred eighty-six dollars
       ($460,186) for willfully and repeatedly violating the Act and the
       Commission's rules.

   35. IT IS FURTHER ORDERED that, pursuant to section 503(b) of the Act and
       section 1.80 of the Commission's rules that Kajeet/Airlink, LLC is
       hereby NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in the
       amount of five hundred two thousand, six hundred forty-two dollars
       ($502,642) for willfully and repeatedly violating the Act and the
       Commission's rules.

   36. IT IS FURTHER ORDERED that, pursuant to section 1.80 of the
       Commission's rules, within thirty (30) calendar days of the release
       date of this Notice of Apparent Liability for Forfeiture and Order,
       the Companies SHALL PAY the full amount of the proposed forfeitures or
       SHALL FILE a written statement seeking reduction or cancellation of
       the proposed forfeitures.

   37. IT IS FURTHER ORDERED that the Companies shall submit within thirty
       days of the release date of this Notice of Apparent Liability for
       Forfeiture and Order, a report supported by a declaration under
       penalty of perjury from a corporate officer setting forth in detail
       the Companies' plans to come into compliance with the payment
       obligations discussed herein and describing the steps Kajeet/Airlink
       has taken to come into compliance with the requirements of section 214
       of the Act and section 63.24 of the Commission's rules. The report
       must be mailed to Theresa Z. Cavanaugh, Acting Chief, Investigations
       and Hearings Division, Enforcement Bureau, Federal Communications
       Commission, 445 12th Street, S.W., Suite 4-C330, Washington, D.C.
       20554. The Companies shall also transmit a copy of the report via
       email to Theresa Z. Cavanaugh at Terry.Cavanaugh@fcc.gov and Kathy
       Berthot at Kathy.Berthot@fcc.gov.

   38. 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 63197-9000.
       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). The
       Companies will also send electronic notification within forty-eight
       (48) hours of the date said payment is made to Terry.Cavanaugh@fcc.gov
       and Kathy.Berthot@fcc.gov.

   39. 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 Theresa Z.
       Cavanaugh at Terry.Cavanaugh@fcc.gov and Kathy Berthot at
       Kathy.Berthot@fcc.gov.

   40. 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.

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

   42. 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, to Daniel Neal, CEO, Kajeet, Inc. and
       Kajeet/Airlink, LLC, 7101 Wisconsin Ave., Suite 1111, Bethesda, MD
       20814.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

   47 U.S.C. S:S: 225(b)(1), 251(e)(2), 254(d).

   47 C.F.R. S:S: 52.32(a), 54.706(a), 64.604(c)(5)(iii)(A).

   47 U.S.C. S: 214; 47 C.F.R. S: 63.24.

   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 on quarterly filings are subject to an annual true-up. 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.

   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, 54.713, and 31 C.F.R. S: 285.12(j).

   47 U.S.C. S: 225(b)(1).

   See Telecommunications Relay Services and the Americans with Disabilities
   Act of 1990, Third Report and Order, 8 FCC Rcd 5300, 5301 P: 7 (1993).
   Telecommunications relay services enable persons with hearing and speech
   disabilities to communicate by telephone with voice-telephone users. Such
   services provide telephone access to a significant number of Americans
   who, without it, might not be able to make calls to or receive calls from
   voice-telephone users. See Telecommunications Relay Services and
   Speech-to-Speech Services for Individuals with Hearing and Speech
   Disabilities, Report and Order, 15 FCC Rcd 5140, 5143 P: 5 (2000).

   47 C.F.R. S:S: 64.604(c)(5)(iii)(A), 64.601(b).

   47 C.F.R. S: 64.604(c)(5)(iii)(B).

   Rolka Loube Saltzer Associates, LLC replaced the National Exchange Carrier
   Association as the TRS Fund administrator effective July 1, 2011. See
   http://www.r-l-s-a.com/TRS/.

   47 U.S.C. S: 251(e)(1).

   47 U.S.C. S: 251(e)(2).

   47 C.F.R. S: 52.32.

   47 C.F.R. S: 54.711(a).

   See FCC Form 499-A Telecommunications Reporting Worksheet  - Annual
   Filing, http://transition.fcc.gov/Forms/Form499-A/499a2-2011.pdf (October
   2011).

   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).  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 id. at 5755, P:
   19. 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 2010).

   See 47 C.F.R. S: 54.709. See also 47 C.F.R. S:S: 52.32,
   64.604(c)(5)(iii)(B).

   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 Fourth
   Quarter 2011 Contribution Factor, Public Notice, 26 FCC Rcd 12943, 12946
   (Managing Dir. 2011) ("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."). The Act and our rules, however, do not condition payment on
   receipt of an invoice or other notice from USAC. See 47 U.S.C. S: 254(d);
   47 C.F.R. S: 54.706(b). A carrier that does not file required worksheets
   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 for Forfeiture and Order, 18
   FCC Rcd 19893, 19896 P: 5 n.22 (2003) ("Globcom NAL") (subsequent history
   omitted). The instructions for the Worksheets 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. See also 47 C.F.R. S: 54.708.

   47 C.F.R. S: 54.713.

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

   47 C.F.R. S:S: 63.12, 63.18.

   47 C.F.R. S: 63.24. For purposes of section 63.24 of the Commission's
   rules, "an assignment of an authorization is a transaction in which the
   authorization is assigned from one entity to another entity. Following an
   assignment, the authorization is held by an entity other than the one to
   which it was originally granted." 47 C.F.R. S: 63.24(b).

   47 C.F.R. S: 63.24(e); see also 47 C.F.R. S: 63.24(d) (excluding pro forma
   applications,  or non-substantial assignments and transfers of control
   that do not result in a change in the actual controlling party or do not
   require prior Commission approval) and Note 1 to paragraph (d) (listing
   the factors relevant to a determination of control).

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

   Response of Kajeet, Inc. and Kajeet/Airlink, LLC to the Enforcement
   Bureau's December 10, 2009 Letter of Inquiry, dated February 28, 2010, at
   response to Question 3 ("LOI Response").

   Id. at response to Questions 3 and 9. Most of the customers of Kajeet's
   prepaid wireless service are children and the ability to make
   international calls from Kajeet handsets has been disabled from all of
   Kajeet handsets. Because Kajeet offers no international telecommunications
   services, it does not hold an international section 214 authorization. Id.
   at response to Question 12.

   Id. at response to Question 10.

   Id. at response to Question 9.

   Letter from Trent B. Harkrader, Deputy Chief, Investigations & Hearings
   Division, Enforcement Bureau, FCC, to David Stanek, Chief Executive
   Officer, Airlink Mobile, Inc., dated August 10, 2009.

   Letter from Trent B. Harkrader, Deputy Chief, Investigations & Hearings
   Division, Enforcement Bureau, FCC, to Daniel Neal, Chief Executive
   Officer, Kajeet Inc. and Kajeet/Airlink LLC, dated December 10, 2009
   ("LOI").

   See LOI Response  at response to Question 18; see also Email from Stefani
   Watterson, USAC, to Kathy Berthot, Attorney-Advisor, Investigations and
   Hearings Division, Enforcement Bureau, FCC, dated December 16, 2010
   (attaching USAC invoices and billing history for Kajeet and
   Kajeet/Airlink) ("First Watterson Email"); Email from Stefani Watterson,
   USAC, to Kathy Berthot, Attorney-Advisor, Investigations and Hearings
   Division, Enforcement Bureau, FCC, dated February 15, 2011 (attaching USAC
   invoices for Kajeet and Kajeet/Airlink) ("Second Watterson Email"); Email
   from Kristin Berkland, USAC, to Kathy Berthot, Attorney-Advisor,
   Investigations and Hearings Division, Enforcement Bureau, FCC, dated
   October 26, 2011 ("Berkland Email"); Email from Marina Aparicio, NECA, to
   Kathy Berthot, Attorney-Advisor, Investigations and Hearings Division,
   Enforcement Bureau, FCC, dated January 7, 2011 (attaching NECA invoices
   and payment history for Kajeet and Kajeet/Airlink) ("Aparicio Email");
   Email from Karen Laffey, Neustar, Inc., to Kathy Berthot,
   Attorney-Advisor, Investigations and Hearings Division, Enforcement
   Bureau, FCC, dated January 24, 2011 ("First Laffey Email"); Email from
   Karen Laffey, Neustar, Inc., to Kathy Berthot, Attorney-Advisor,
   Investigations and Hearings Division, Enforcement Bureau, FCC, dated
   October 26, 2011 ("Second Laffey Email").

   See LOI Response at response to Questions 10, 12, Attachment C. The
   Companies requested confidential treatment of "all of the materials
   provided herein by Kajeet, which relates specifically to the acquisition
   of certain assets by Kajeet/Airlink LLC." Id. at 1. Accordingly, the
   details concerning Kajeet/Airlink's acquisition of certain assets of
   Airlink Mobile are discussed in an Appendix hereto, and we are treating
   the Appendix as confidential at this time. 47 C.F.R. S: 0.459(d)(3) ("The
   Commission may defer acting on requests that materials or information
   submitted to the Commission be withheld from public inspection until a
   request for inspection has been made pursuant to S: 0.460 or S: 0.461. The
   information will be accorded confidential treatment ... until the
   Commission acts on the confidentiality request and all subsequent appeal
   and stay proceedings have been exhausted.").

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

   See, e.g., Callais Cablevision, Inc.,  Notice of Apparent Liability for
   Monetary Forfeiture, 16 FCC Rcd 1359, 1362, P: 10 (2001) ("Callais
   Cablevision") (issuing an NAL for, inter alia, a cable television
   operator's repeated violation of the cable signal leakage rules).

   Southern California Broadcasting,  6 FCC Rcd at 4388 P: 5; Callais
   Cablevision,  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.,  Forfeiture Order, 17 FCC Rcd 7589,
   7591 P: 4 (2002).

   47 U.S.C. S:S: 214, 225(b)(1), 251(e)(2), 254(d).

   47 C.F.R. S:S: 52.32(a), 54.706(a), 63.24, 64.604(c)(5)(iii)(A).

   47 U.S.C. S: 254(d); 47 C.F.R. S: 54.706(a).

   47 C.F.R. S: 54.706(a).

   See id.

   See LOI Response  at response to Question 18.

   See id.; see also First Watterson Email, Second Watterson Email, Berkland
   Email. As of October 2011, Kajeet's USAC invoices reflected a credit
   balance.

   The apparent violations continued with each subsequent day on which Kajeet
   failed to make full payment. See Globcom, Inc. d/b/a Globcom Global
   Communications, 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
   Intellicall Operator Services, Forfeiture Order, 15 FCC Rcd 21771, 21772,
   P: 6 n.8 (2000). 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; Rural
   Health Care 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, 16381, 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, 6139-40,
   P:P: 31-33 (2008) ("Compass Global NAL"); Global Crossing North America,
   Inc., Notice of Apparent Liability for Forfeiture, 23 FCC Rcd 6110,
   6120-22, P:P: 21-25 (2008) ("Global Crossing NAL"); VCI Company, Notice of
   Apparent Liability for Forfeiture and Order, 22 FCC Rcd 15933, 15941, P:
   24 & n.69 (2007); Matrix Telecom, Inc., Notice of Apparent Liability for
   Forfeiture, 15 FCC Rcd 13544, 13546, P: 7 (2000);  Conquest Operator
   Services Corp.,  Order of Forfeiture, 14 FCC Rcd 12518, 12524-25, P: 16
   (1999).

   See First Watterson Email, Second Watterson Email.

   LOI Response  at response to Question 18.

   Id.

   Id.

   See Kajeet/Airlink, LLC, 2010 FCC Form 499-A.

   As set forth in detail in the attached confidential Appendix,
   Kajeet/Airlink acquired the assets of a telecommunications provider in
   April 2009. The instructions for the quarterly Worksheets explicitly
   provide that "[w]here an entity obtains, through purchase, merger or
   transfer, the telecommunications operations or customer base of a
   telecommunications provider during a quarter, the acquiring company must
   report all telecommunications revenues associated with such operations or
   customer base including revenues billed in the quarter prior to the date
   of acquisition." See FCC Form 499-Q Telecommunications Reporting Worksheet
    - Quarterly Filing for Universal Service Contributors,
   http://www.fcc.gov/Forms/Form499-Q/499q.pdf (April 2010). Therefore,
   Kajeet/Airlink should have filed a quarterly Worksheet on May 1, 2009
   which included revenues billed during the prior quarter (January 1 - March
   31, 2009) and projected revenues for the upcoming quarter (July 1 -
   September 30, 2009).

   See supra note 22. A carrier that does not file the required Worksheets
   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 NAL, 18 FCC Rcd at 19896, P: 5 n.22. USAC included a true-up
   adjustment for 2009 based on Kajeet/Airlink's late-filed 2010 Form 499-A
   (reporting revenues for 2009) in three equal installments in
   Kajeet/Airlink's October, November and December 2010 invoices. See Second
   Watterson Email.

   See First Watterson Email, Second Watterson Email. As noted above, the
   violations continued with each subsequent day on which Kajeet/Airlink
   failed to make full payment. See supra note 52.

   See Berkland Email. As of October 2011, Kajeet/Airlink's USAC invoices
   reflected a credit balance of approximately $12,000 but it had a past due
   balance to USAC (in the form of delinquent debt transferred to the
   Commission pursuant to the DCIA transfer process) of approximately
   $39,000. See id.

   47 U.S.C. S: 225; 47 C.F.R. S: 64.604(c)(5)(iii)(A).

   Id. See also 47 C.F.R. S: 64.604(c)(5)(iii)(B) (setting forth methods of
   computation and payment of contributions to TRS Fund).

   47 C.F.R. S: 64.604(c)(5)(iii)(B).

   Id. Under the Commission's rules, each subject carrier must contribute at
   least $25 per year, and providers whose annual contributions are less than
   $1,200 must pay the entire amount at the beginning of the contribution
   period. Otherwise, providers may divide their contributions into equal
   monthly payments. Id.

   See Aparicio Email.

   See id. The TRS Fund administrator also issued a credit adjustment invoice
   to Kajeet on October 4, 2010. See id.

   See id. The TRS Fund administrator did not invoice Kajeet/Airlink until
   November 2010 because it filed its 2010 annual Worksheet late. See id.

   See id.

   47 U.S.C. S: 251(e)(2); 47 C.F.R. S: 52.32(a).

   47 C.F.R. S: 52.32(a).

   See First Laffey Email, Second Laffey Email.

   See First Laffey Email, Second Laffey Email. The LNP administrator did not
   begin invoicing Kajeet/Airlink until October 2010 because it filed its
   2010 annual Worksheet late. See First Laffey Email.

   See First Laffey Email, Second Laffey Email.

   See First Laffey Email, Second Laffey Email.

   47 U.S.C. S: 214; 47 C.F.R. S: 63.24.

   47 C.F.R. S: 63.24.

   47 C.F.R. S: 63.24(e).

   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, 23 FCC Rcd 9845 (2008).

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

   47 C.F.R. S: 1.80(b)(4), Note to Paragraph (b)(4): Guidelines for
   Assessing Forfeitures.

   See supra para. 13.

   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 Forfeiture Order, 21 FCC Rcd at 4722 P:
   33.

   See OCMC Forfeiture Order, 21 FCC Rcd at 10482 P: 10; Globcom Forfeiture
   Order, 21 FCC Rcd at 4722 P: 33.

   See 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); Global
   Crossing NAL, 23 FCC Rcd at 6120-23 P:P: 21-27 (proposing $10,518,013
   forfeiture for, inter alia, the apparent failure to make required
   universal service contributions).

   We note that Kajeet's violations for the months of May through August 2009
   were cured more than one year ago.

   These months consist of September 2009 through December 2009, February
   2010 through December 2010, and May and June 2011. See supra para. 13.

   These months are January 2010 and January 2011. See supra para. 13.

   See supra para. 13. This amount includes Kajeet's largest unpaid balance
   to USAC plus delinquent debt transferred to the Commission pursuant to the
   DCIA transfer process.

   47 U.S.C. S: 225(b)(1).

   See Globcom NAL, 18 FCC Rcd at 19904 P: 29.

   47 U.S.C. S: 251(e)(2).

   See Telrite NAL, 23 FCC Rcd at 7245 P: 34.

   Kajeet/Airlink should have filed Worksheets beginning in May 2009. See
   supra note 58 and accompanying text. Although the Worksheets were due on
   specific dates, Kajeet/Airlink's failure to report revenue had a
   continuing harmful impact on various programs because the relevant fund
   administrators could not properly assess Kajeet/Airlink's payment
   obligations. Kajeet/Airlink's failures to file worksheets constitute
   continuing violations for which the one-year statute of limitations for
   forfeitures under section 503(b)(2)(B) of the Act is tolled until the
   violation is cured. See Telrite NAL,  23 FCC Rcd at 7244 P: 30. Consistent
   with precedent, however, we exercise our prosecutorial discretion here and
   decline to propose forfeitures for Kajeet/Airlink's failures to file
   Worksheets, all of which occurred more than one year prior to the date of
   this NAL. See, e.g., Omniat International Telecom, LLC d/b/a Omniat
   Telecom, Notice of Apparent Liability for Forfeiture, 24 FCC Rcd 4254,
   4265 P: 26 (2009); Compass Global NAL, 23 FCC Rcd at 6138 P: 29. We
   caution Kajeet/Airlink and other carriers that future enforcement actions
   may consider all failures to file Worksheets as continuing violations
   subject to forfeiture action.

   See supra para. 14. If Kajeet/Airlink had begun filing quarterly
   Worksheets in May 2009, it would have received its first invoice from USAC
   no later than July 2009 with its first payment due in August 2009.

   These months consist of August 2009 through November 2010, and January,
   March, April and May 2011. See supra para. 14.

   These months are December 2010 and February 2011. See supra para. 13.

   See Telrite NAL, 23 FCC Rcd at 7245 P: 34.

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

   See e.g., Shop at Home Holdings, Inc., Notice of Apparent Liability for
   Forfeiture, 25 FCC Rcd 23, 25 P: 8 (Enf. Bur., Investigations and Hearings
   Div., 2010) (proposing a $16,000 forfeiture against an entity which
   acquired and operated two satellite earth stations without prior
   Commission approval and failed to file a corrective application for more
   than two years).

   Kajeet and Kajeet/Airlink continue to have unpaid outstanding balances due
   to the TRS and LNP Administrators and Kajeet/Airlink continues to have an
   unpaid outstanding balance due to USAC. We note that payment of the
   forfeitures proposed in this NAL does not absolve Kajeet and
   Kajeet/Airlink of their obligations to pay their delinquent balances. As
   discussed supra at note 9, debt collection procedures may include further
   administrative efforts both by the Commission and by 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.

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

   47 C.F.R. S: 1.80.

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

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

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