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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                                 )                           
                                                                             
     In the Matter of                            )   File No.: EB-07-SE-310  
                                                                             
     Cardinal Broadband, LLC,                    )   NAL/Acct. No.:          
     aka Sovereign Telecommunications,               200832100070            
                                                 )                           
     a wholly owned subsidiary of Cardinal           FRN: 0018035063         
     Communications, Inc.                        )                           
                                                                             
                                                 )                           


                                forfeiture ORDER

   Adopted: July 13, 2012 Released: July 13, 2012

   By the Chief, Enforcement Bureau:

   I. introduction

    1. In this Forfeiture Order, we issue a monetary forfeiture in the amount
       of twenty-five thousand dollars ($25,000) to Cardinal Broadband, LLC,
       aka Sovereign Telecommunications, a wholly-owned subsidiary of
       Cardinal Communications, Inc., for its willful and repeated violation
       of Section 9.5(b) of the Federal Communication Commission's rules
       (Rules). The noted violation involves Cardinal's failure to provide
       E911 service (for more than two months) in connection with its Voice
       over Internet Protocol (VoIP) offering. This Forfeiture Order furthers
       the Commission's longstanding and continuing commitment to promoting
       E911 service to help ensure the safety and welfare of all Americans.

   II. BACKGROUND 

    2. On August 15, 2008, the Enforcement Bureau (Bureau) of the Federal
       Communications Commission (FCC or Commission) issued a Notice of
       Apparent Liability for Forfeiture to Cardinal in the amount of $25,000
       for its apparent violation of Section 9.5 of Rules by failing to
       provide E911 service. The Bureau's investigation into this matter was
       initiated by a complaint that Cardinal, an interconnected VoIP service
       provider, was not providing E911 service to residents of a condominium
       complex called Millstone in Golden, Colorado. Specifically, the
       complaint alleged that residents of the condominium complex could not
       make E911 calls and could not reach their local police department. In
       the VoIP E911 NAL, the Bureau determined that Cardinal was subject to
       the requirements of Section 9.5 as a provider of interconnected VoIP
       services and that Cardinal failed to provide compliant E911 service.

    3. Cardinal submitted a single response to both the VoIP E911 NAL and the
       Section 1.17 NAL. In this Consolidated NAL Response, Cardinal disputes
       the finding in the VoIP E911 NAL that it is an interconnected VoIP
       service provider. Cardinal also contends that the failure to provide
       compliant E911 service was the fault of Prime Time Communications, the
       third party whose VoIP service Cardinal was reselling at the Millstone
       condominium complex. Cardinal further asserts that no violation
       occurred during the one year period prior to the issuance of the VoIP
       E911 NAL and that its actions were neither "willful" nor "repeated."
       Finally, Cardinal requests cancellation or reduction of the proposed
       forfeiture on the ground that payment would pose a financial hardship.

   III. Discussion

    4. The proposed forfeiture amount in this case was assessed in accordance
       with Section 503(b) of the Communications Act of 1934, as amended (the
       Act), Section 1.80 of the Rules, and the Forfeiture Policy Statement.
       In examining Cardinal's Consolidated NAL Response, Section 503(b) of
       the Act requires that the Commission 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 other such matters as justice may
       require. As discussed below, we have considered Cardinal's response in
       light of these statutory factors and find that neither cancellation
       nor reduction of the forfeiture is warranted.

     A. Failure to provide interconnected VoIP service

    5. Section 9.5(b)(1) of the Rules states, in relevant part, that
       "[i]nterconnected VoIP service providers must, as a condition of
       providing service to a consumer, provide that consumer with E911
       service as described in this section." As set forth in the VoIP E911
       NAL, the Bureau determined that Cardinal was subject to the
       requirements of Section 9.5 "as a provider of interconnected VoIP
       services" and that Cardinal failed to provide compliant E911 service.

    6. In its Consolidated NAL Response, Cardinal again argues that the
       service it provides does not meet the definition of "interconnected
       VoIP service." The Bureau previously considered and properly rejected
       this argument in the VoIP E911 NAL. As the Bureau noted, the
       "Commission made no distinction between providers who own and operate
       their own facilities, services, or networks, and those who outsource
       some or all of those functions to others." Cardinal presents no
       additional arguments and no new evidence that would alter our
       conclusion that, as a reseller of VoIP service, Cardinal was a
       provider of interconnected VoIP within the meaning of Section 9.5 of
       the Rules and therefore was obligated to provide fully compliant E911
       service.

    7. We also find unpersuasive Cardinal's argument that no forfeiture
       should be imposed for its violation of Section 9.5(b) because the
       failure to provide E911 service to the Millstone condominium community
       was the fault of Prime Time Communications, the third party whose
       interconnected VoIP service Cardinal resold. In this instance,
       Cardinal has acknowledged that it resells interconnected VoIP service
       at the Millstone condominium community. As a consequence, Cardinal was
       a provider of interconnected VoIP service and was responsible for its
       compliance with Section 9.5. Moreover, the Commission has consistently
       "refused to excuse licensees from forfeiture penalties where the
       actions of employees, independent contractors, or agents have resulted
       in violations."

    8. In addition, we reject Cardinal's claim that its violation of Section
       9.5(b) was not "willful" because Cardinal "tried to immediately remedy
       the situation once made aware of it." Section 312(f)(1) of the Act,
       which applies to violations for which forfeitures are assessed under
       Section 503(b) of the Act, provides that "[t]he term `willful', ...
       means the conscious and deliberate commission or omission of such act,
       irrespective of any intent to violate any provision of this Act or any
       rule or regulation of the Commission authorized by this Act ...."
       Cardinal's subsequent remedial measures, while laudable, are
       irrelevant to whether its actions were "willful" within the meaning of
       Section 312(f)(1) of the Act.

    9. We similarly reject Cardinal's assertion that its violation of Section
       9.5(b) of the Rules was not "repeated." Section 312(f)(2) of the Act
       provides that "[t]he term `repeated,' ... means the commission or
       omission of such act more than once or, if such commission or omission
       is continuous, for more than one day." As noted below, the record
       before us establishes that Cardinal's violation of Section 9.5(b)
       spanned multiple days (more than two months), continuing until as late
       as October 23, 2007.

     A. Proposed forfeiture consistent with Section 503(b)(6) 

   10. In its Consolidated NAL Response, Cardinal also argues for the first
       time that E911 service at the Millstone condominium "was fixed in
       early August of 2007[,]" two months earlier than Cardinal indicated in
       its prior sworn statements. On this basis, Cardinal claims that it is
       "not aware of a violation that occurred during the [one] year prior to
       issuance of this NAL[.]" While Section 503(b)(6) of the Act bars the
       Commission from proposing a forfeiture for violations that occurred
       more than one year prior to the issuance of a notice of apparent
       liability for forfeiture, we do not find Cardinal's latest claim to be
       credible or reliable; it is exceedingly general (referring only to
       "early August of 2007"), is unsupported by any documentary evidence,
       and contradicts detailed, sworn information Cardinal provided to the
       Bureau during the course of the investigation.

   11. Specifically, Cardinal had previously declared under penalty of
       perjury that it switched its VoIP service provider from Prime Time
       Communications to Simple Signal in July 2007, that Simple Signal
       "began" servicing customers at the Millstone condominium community on
       August 15, 2007, and that all VoIP customers at the Millstone
       condominium were provided E911-compliant service "by or before October
       23, 2007." In the absence of any documentary evidence to counter
       Cardinal's initial report, or even an explanation of the conflicting
       claims on when compliant E911 service commenced, we have no basis on
       which to conclude that Cardinal's earlier sworn statements are
       inaccurate or that Cardinal provided fully compliant E911 service
       prior to August 15, 2007. Regardless of whether Cardinal's violation
       of Section 9.5(b) ended on August 15, 2007 or October 23, 2007, the
       VoIP E911 NAL was issued within the one year statute of limitations in
       accordance with the requirements of Section 503(b)(6) of the Act.

     A. Lack of a basis for reduction of the proposed forfeiture

   12. Finally, Cardinal asserts that payment of the proposed forfeiture
       would pose a financial hardship. The Commission has determined that,
       in general, gross revenues are the best indicator of an ability to pay
       a forfeiture. In addition, and as detailed in the instructions
       provided in the VoIP E911 NAL, "[c]laims of inability to pay should be
       supported by tax returns or other financial statements prepared under
       generally accepted accounting procedures for the most recent three
       year period." Cardinal only submitted financial statements covering
       the eight-month period, January through August 2008. Moreover,
       Cardinal's revenues, as reflected in the limited financial statements
       it did submit, would not warrant a reduction of the forfeiture amount.

   iV. ordering clauses

   13. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the Act
       and Sections 0.111, 0.311, and 1.80 of the Rules, Cardinal Broadband,
       LLC IS LIABLE FOR A FORFEITURE in the amount of twenty-five thousand
       dollars ($25,000) for failing to provide compliant E911 service in
       willful and repeated violation of Section 9.5(b) of the Rules.

   14. Payment of the forfeiture shall be made in the manner provided for in
       Section 1.80 of the Rules within ten (10) calendar days after the
       release date of this Forfeiture Order.  If the forfeiture is not paid
       within the period specified, the case may be referred to the U.S.
       Department of Justice for enforcement of the forfeiture pursuant to
       Section 504(a) of the Act.  Cardinal shall send electronic
       notification of payment to Josh Zeldis at Josh.Zeldis@fcc.gov and
       Samantha Peoples at Sam.Peoples@fcc.gov on the date said payment is
       made.

   15. The payment must be made by check or similar instrument, wire
       transfer, or credit card, and must include the NAL/Account number and
       FRN referenced above. Regardless of the form of payment, a completed
       FCC Form 159 (Remittance Advice) must be submitted. When completing
       the FCC Form 159, enter the Account Number in block number 23A (call
       sign/other ID) and enter the letters "FORF" in block number 24A
       (payment type code).   Below are additional instructions you should
       follow based on the form of payment you select:

     * Payment by check or money order must be made payable to the order of
       the Federal Communications Commission.  Such payments (along with the
       completed Form 159) must be mailed to Federal Communications
       Commission, P.O. Box 979088, St. Louis, MO 63197-9000, or sent
       via overnight mail to U.S. Bank - Government Lockbox #979088,
       SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101. 

     * Payment by wire transfer must be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and Account Number 27000001.  To complete
       the wire transfer and ensure appropriate crediting of the wired funds,
       a completed Form 159 must be faxed to U.S. Bank at (314) 418-4232 on
       the same business day the wire transfer is initiated. 

     * Payment by credit card must be made by providing the required credit
       card information on FCC Form 159 and signing and dating the Form 159
       to authorize the credit card payment. The completed Form 159 must then
       be mailed to Federal Communications Commission, P.O. Box 979088, St.
       Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank -
       Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St.
       Louis, MO 63101. 

   16. Any request for full payment 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.  If you have questions regarding payment
       procedures, please contact the Financial Operations Group Help Desk by
       phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov. 

   17. IT IS FURTHER ORDERED that a copy of this Forfeiture  Order shall be
       sent by first class mail and certified mail return receipt requested
       to Jon Bartlett, President, Cardinal Broadband, LLC, 2150 West 6th
       Avenue, Suite H, Broomfield, CO 80020 and to Michael Wasik, Chairman
       and CEO, Roomlinx, Inc., 2150 West 6th Avenue, Suite H, Broomfield, CO
       80020.

   FEDERAL COMMUNICATIONS COMMISSION

   P. Michele Ellison

   Chief, Enforcement Bureau

   Cardinal Broadband, LLC (Cardinal) was formed in 2005 as a Colorado
   limited liability company. On October 1, 2010, pursuant to an acquisition
   by Roomlinx, Inc. of Cardinal's parent, Roomlinx, Inc. became the sole
   member of Cardinal. See Roomlinx, Inc., Annual Report (Form 10-K), at 50
   (Mar. 30, 2012).

   47 C.F.R. S: 9.5(b).

   In the Matter of E911 Enabled Services; E911 Requirements for IP-Enabled
   Service Providers, WC Docket No. 04-36, WC Docket No. 05-196, First Report
   and Order and Notice of Proposed Rulemaking, 20 FCC Rcd 10245, 10246,
   para. 5 (2005).

   Cardinal Broadband, LLC, Notice of Apparent Liability for Forfeiture and
   Order, 23 FCC Rcd 12224 (Enf. Bur. 2008) (VoIP E911 NAL). In a matter
   closely related to the VoIP E911 NAL, the Bureau issued a Notice of
   Apparent Liability for Forfeiture to Cardinal in the amount of $25,000 for
   its apparent violation of Section 1.17(a)(2) of the Rules by providing
   incorrect material factual information to the Commission without a
   reasonable basis for believing that the information was correct and
   accurate. Cardinal Broadband, LLC, Notice of Apparent Liability for
   Forfeiture, 23 FCC Rcd 12233 (Enf. Bur. 2008) (Section 1.17 NAL). In a
   companion decision issued concurrently with this Forfeiture Order, we
   affirm the Section 1.17 NAL.

   VoIP E911 NAL, 23 FCC Rcd at 12227-12228, paras. 9, 12.

   See Letter from Ed Garneu, Manager, Cardinal Broadband, LLC, to Spectrum
   Enforcement Division, FCC Enforcement Bureau (Oct. 10, 2008) (Consolidated
   NAL Response) at 1-2.

   Consolidated NAL Response at 2.

   Id. at 1-2.

   Id. at 2.

   Id. at 3.

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

   47 C.F.R. S: 1.80.

   The Commission's Forfeiture Policy Statement and Amendment of Section 1.80
   of the Rules to Incorporate the Forfeiture Guidelines, Report and Order,
   12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999) (Forfeiture
   Policy Statement).

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

   47 C.F.R. S: 9.5(b)(1); IP-Enabled Services and E911 Requirements for
   IP-Enabled Service Providers, First Report and Order and Notice of
   Proposed Rulemaking, 20 FCC Rcd 10245, 10266, para. 37 (2005) (VoIP 911
   Order), aff'd sub nom. Nuvio v. FCC, 473 F.3d 302 (D.C. Cir. 2006). See
   also, 47 C.F.R. S: 9.5(a) (making the E911 service requirements
   "applicable to providers of interconnected VoIP services"). An
   interconnected VoIP service is a service that: (1) enables real-time,
   two-way voice communications; (2) requires a broadband connection from the
   user's location; (3) requires Internet Protocol-compatible customer
   premises equipment; and (4) permits users generally to receive calls that
   originate on the public switched telephone network (PSTN) and to terminate
   calls to the PSTN. See 47 C.F.R. S: 9.3; see also VoIP 911 Order, 20 FCC
   Rcd at 10257-10258, para. 24.

   VoIP E911 NAL, 23 FCC Rcd at 12227, para. 9.

   Id. at 12228, para. 12.

   Consolidated NAL Response at 2.

   VoIP E911 NAL, 23 FCC Rcd at 12226-12228, paras. 8-12. In response to the
   Bureau's inquiries, Cardinal argued that it "do[es] not provide
   interconnected VoIP service," but has acknowledged that it resells
   interconnected VoIP service. See Letter from Edward A. Garneau, Chief
   Executive Officer, Cardinal Communications, Inc., and Ronald S. Bass,
   Principal Accounting Officer, Cardinal Communications, Inc., to Kathryn S.
   Berthot, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, and
   Thomas D. Fitz-Gibbon, Esq., Spectrum Enforcement Division, FCC
   Enforcement Bureau (Oct. 9, 2007) at 3. In the VoIP E911 NAL, the Bureau
   stated that it was not clear from the information provided by Cardinal
   whether the company was a "reseller" or primary provider of interconnected
   VoIP service. See VoIP E911 NAL, 23 FCC Rcd at 12227, para. 9. The Bureau
   concluded, however, that "[w]e do not need to decide this issue ...
   because even assuming that Cardinal resells interconnected VoIP service,
   it is nevertheless subject to the requirements in section 9.5 of the
   Commission's rules as a provider of interconnected VoIP services." Id.

   VoIP E911 NAL, 23 FCC Rcd at 12227, para. 9.

   Consolidated NAL Response at 2.

   See Letter from Ronald S. Bass, Principal Accounting Officer, Cardinal
   Communications, Inc., to Thomas D. Fitz-Gibbon, Esq., Spectrum Enforcement
   Division, FCC Enforcement Bureau (Jan. 7, 2008) (January 7 Response) at 4.

   See VoIP E911 NAL, 23 FCC Rcd at 12227, para. 9.

   See, e.g., Eure Family Limited Partnership, Memorandum Opinion and Order,
   17 FCC Rcd 21861, 21863-64, para. 7 (2002) (concluding that an antenna
   structure owner was responsible for the willful acts and omissions of its
   contractor when the contractor failed to monitor obstruction lights to
   ensure compliance with the Commission's Rules); Triad Broadcasting
   Company, Inc., Memorandum Opinion and Order, 96 FCC 2d 1235, 1244, para.
   21 (1984) (determining that Commission licensee could not escape
   forfeiture liability where actions by its legal counsel resulted in
   Commission violations).

   Consolidated NAL Response at 2.

   47 U.S.C. S: 312(f)(1). See Southern California Broadcasting Co.,
   Memorandum Opinion and Order, 6 FCC Rcd 4387 (1991).

   The Commission has repeatedly held that post-violation corrective measures
   are not sufficient to avoid liability. See, e.g., AT&T Wireless Services,
   Inc., Forfeiture Order, 17 FCC Rcd 21866, 21870-71, para. 14 (2002);
   America's Tele-Network Corp., Order of Forfeiture, 16 FCC Rcd 22350,
   22355, para. 13 (2001); Coleman Enters., Inc. d/b/a/ Local Long Distance,
   Inc., Order of Forfeiture, 15 FCC Rcd 24385, 24388, para. 8 (2000).

   Consolidated NAL Response at 2.

   47 U.S.C. S: 312(f)(2). See Callais Cablevision, Inc., Notice of Apparent
   Liability for Forfeiture, 16 FCC Rcd 1359, 1362, para. 9 (2001); Southern
   California, 6 FCC Rcd at 4388, para. 5.

   January 7 Response at 4. Even assuming, however, that fully compliant E911
   service was provided to the Millstone condominium community at an earlier
   date (i.e., on August 15, 2007), see infra paras. 10-11, Cardinal has
   acknowledged that multiple customers at the Millstone condominium property
   experienced E911 service problems. Id. (stating that the service offered
   at the Millstone condominium community included "30 telephone numbers
   servicing 28 customers"). Cardinal therefore would have repeatedly
   violated the rule as to multiple customers.

   Consolidated NAL Response  at 2

   Id.

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

   January 7 Response at 4.

   Id.

   Consolidated NAL Response at 3.

   See PJB Communications of Virginia, Inc., Forfeiture Order, 7 FCC Rcd
   2088, 2089, para. 8 (1992) (forfeiture not deemed excessive where it
   represented approximately 2.02 percent of the violator's gross revenues);
   Local Long Distance, Inc., Forfeiture Order, 16 FCC Rcd 24385 (2000)
   (forfeiture not deemed excessive where it represented approximately 7.9
   percent of the violator's gross revenues); Hoosier Broadcasting
   Corporation, Forfeiture Order, 15 FCC Rcd 8640 (2002) (forfeiture not
   deemed excessive where it represented approximately 7.6 percent of the
   violator's gross revenues).

   See VoIP E911 NAL, 23 FCC Rcd at 12232, para. 24.

   Based on established precedent, the $25,000 forfeiture proposed in the
   VoIP E911 NAL is not excessive in comparison to Cardinal's reported gross
   revenues. See supra note 37.

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

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

   Id. S: 1.80.

   47 U.S.C. S: 504(a).

   An FCC Form 159 and detailed instructions for completing the form may be
   obtained at http://www.fcc.gov/Forms/Form159/159.pdf.

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

   (Continued from previous page)

   (continued ...)

   Federal Communications Commission DA 12-1123

   Federal Communications Commission DA 12-1123