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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                          )                                
                                                           
                          )   File No.: EB-10-SE-127       
     In the Matter of                                      
                          )   NAL/Acct. No.: 201232100024  
     T-Mobile USA, Inc.                                    
                          )   FRN: 0006945950              
                                                           
                          )                                


                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted: April 13, 2012 Released: April 13, 2012

   By the Commission:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture,  we propose a
       forfeiture in the amount of eight hundred nineteen thousand dollars
       ($819,000) against T-Mobile USA, Inc. (T-Mobile). As detailed herein,
       we find that T-Mobile apparently willfully and repeatedly violated
       Sections 20.19(c)(2) and 20.19(d)(2) of the Commission's rules
       (Rules). We further find that this apparent misconduct persisted for
       the two-year period, 2009-2010. Specifically, T-Mobile, a nationwide
       wireless carrier with more than 33 million customers and more than $21
       billion dollars in annual revenue, apparently failed to offer the
       required number of hearing aid-compatible digital wireless handset
       models as set forth in the Rules. These hearing aid compatibility
       requirements serve to ensure that consumers with hearing loss have
       access to advanced telecommunications services.

   II. BACKGROUND

    2. In the 2003 Hearing Aid Compatibility Order, the Commission adopted
       several measures to enhance the ability of consumers with hearing loss
       to access digital wireless telecommunications. The Commission
       established technical standards that digital wireless handsets must
       meet to be considered compatible with hearing aids operating in
       acoustic coupling and inductive coupling (telecoil) modes.
       Specifically, the Commission adopted a standard for radio frequency
       interference (the M3 rating) to enable acoustic coupling between
       digital wireless phones and hearing aids operating in acoustic
       coupling mode,  and a separate standard (the T3 rating) to enable
       inductive coupling with hearing aids operating in telecoil mode.

    1. In the 2008 Hearing Aid Compatibility First Report and Order, the
       Commission established various deadlines between 2008 and 2011 by
       which manufacturers and service providers must offer specified numbers
       of digital wireless handset models rated hearing aid-compatible. These
       handset deployment requirements apply to each air interface over which
       the service provider offers service. In addition, the number of
       digital wireless handset models that each company must offer depends
       on the applicable compatibility standard (M rating or T rating), and
       the deployment schedule is tailored to the size of the service
       provider as measured by its number of subscribers.

    2. Specifically, Tier I carriers were required to offer the following
       minimum numbers of hearing aid-compatible handsets:

   Table 1: Hearing Aid-Compatible Handset Deployment Requirements


                        M3 -        T3 - Inductive                           
                      Acoustic         Coupling                              
                      Coupling                                               

         Dates                    Number of wireless     Number of wireless  
                                  handset models per     handset models per  
                                 digital air interface      digital air      
                                 that must be rated M3     interface that    
                                       or higher          must be rated T3   
                                                             or higher       

     Effective date               At least 8 handset     At least 3 handset  
      of rules to                 models, or at least      models, or at     
                                   50% of the models      least 1/3 of the   
      February 14,               offered (whichever is     models offered    
          2009                           less)             (whichever is     
                                                               less)         

      February 15,                At least 9 handset                         
        2009 to                    models or 50% of      At least 5 handset  
                                                         models, or 1/3 of   
      February 14,                the models offered     the models offered  
          2010                                                               

      February 15,                                                           
        2010 to                   At least 10 handset    At least 7 handset  
                                 models, or 50% of the   models, or 1/3 of   
      December 31,                  models offered       the models offered  
          2010                                                               


     1. On January 14, 2010, T-Mobile submitted a hearing aid compatibility
        status report covering January 1, 2009 to December 31, 2009. T-Mobile
        identified each handset model it offered to consumers and specified
        the model's FCC Identification (FCC ID) as well as the hearing aid
        compatibility rating, if any. After a careful review of T-Mobile's
        submission, the Wireless Telecommunications Bureau referred this
        matter to the Enforcement Bureau (Bureau) for investigation and
        possible enforcement action.

     2. As part of its investigation, Commission staff consulted the FCC
        Office of Engineering and Technology Equipment Authorization System
        to independently confirm the hearing aid compatibility rating of each
        handset model as established in the grant of equipment authorization
        issued by the Commission for that handset. The FCC Office of
        Engineering and Technology Equipment Authorization System is an
        electronic database of all equipment certified under FCC authority.
        The database identifies the hearing aid compatibility rating of each
        device by FCC ID, as reported by the handset manufacturer in test
        reports submitted to the Commission at the time of an equipment
        authorization or of any modifications to such authorization. The
        Commission's investigation revealed a variety of inaccuracies in
        T-Mobile's hearing aid compatibility reports as to both its WCDMA and
        GSM handset offerings.

     3. On September 10, 2010, the Bureau issued a letter of inquiry (LOI) to
        T-Mobile, directing the company to submit a sworn written response to
        a series of questions related to its compliance with Sections
        20.19(c)(2) and 20.19(d)(2) of the Rules. T-Mobile responded to the
        LOI on September 30, 2010 (LOI Response), stating that it had relied
        on the manufacturers' reports for several handset models' hearing aid
        compatibility ratings. In October 2010, T-Mobile disclosed to the
        Commission possible hearing aid-compatible handset deployment
        violations during the 2010 calendar year. As a consequence, the
        Commission expanded its investigation to include these additional
        potential violations.

   III. DISCUSSION

          A. Failure to Comply With Hearing Aid-Compatible Handset Deployment
             Requirements on the WCDMA Air Interface

     5. Our analysis of T-Mobile's compliance with the hearing aid
        compatibility rules focuses on the company's apparent handset
        deployment deficiencies for the WCDMA air interface, where over an
        extended period of time, T-Mobile apparently failed to meet the
        minimum regulatory benchmarks for hearing aid-compatible handsets
        rated M3 or higher (M3-rated handset models) and for hearing aid-
        compatible handsets rated T3 or higher (T3-rated handset models).

     6. Acoustic Coupling (M3-rated handset models). We find that T-Mobile
        apparently failed to offer to consumers during the 2009 and 2010
        calendar years the required number of M3-rated handset models that
        operate on the WCDMA air interface. As noted above, the Commission
        has imposed varying benchmarks for the deployment of hearing
        aid-compatible handsets. During 2009, T-Mobile was required to offer
        between four and nine M3-rated handset models that operate on the
        WCDMA air interface. As detailed in Appendix A, T-Mobile apparently
        failed to meet this standard, repeatedly falling short each month by
        one to three handset models. T-Mobile's record failed to improve
        during 2010: T-Mobile was required to offer either nine or ten
        M3-rated handset models that operate on the WCDMA air interface, but
        failed to meet this benchmark even once, repeatedly falling short
        each month by as many as four handset models. Accordingly, we find
        that T-Mobile apparently willfully and repeatedly violated Section
        20.19(c)(2) of the Rules by failing to offer to consumers the
        required number of digital wireless M3-rated handset models that
        operate on the WCDMA air interface. We also find that this apparent
        misconduct continued for seven months in 2009 and for all of 2010.

     7. Inductive Coupling (T3-rated handset models). We further find that
        T-Mobile apparently failed to offer to consumers during the 2009 and
        2010 calendar years the required number of T3-rated handset models
        that operate on the WCDMA air interface. During 2009, T-Mobile was
        required to offer between three and five T3-rated handset models that
        operate on the WCDMA air interface. As set forth in greater detail in
        Appendix C, T-Mobile apparently failed to meet this standard,
        repeatedly falling short each month during the year by as many as
        four handset models. Similarly, during 2010, T-Mobile was required to
        offer between five and seven T3-rated handset models that operate on
        the WCDMA air interface. As shown in Appendix D, T-Mobile failed to
        meet the deployment benchmarks during seven months in 2010,
        repeatedly falling short by at least one and by as many as three
        handset models. Accordingly, we conclude that T-Mobile apparently
        willfully and repeatedly violated Section 20.19(d)(2) of the Rules by
        failing to offer to consumers the required number of T3-rated handset
        models that operate on the WCDMA air interface. We also find that
        this apparent misconduct continued for all of 2009 and for seven
        months in 2010.

     8. We note that with respect to one handset model-the Huawei Tap (FCC ID
        QISU7519)-offered from November 2009 until December 2010, T-Mobile
        asserts that it obtained ratings information for the handset model
        "directly from Huawei," and that it "lawfully relied" on
        manufacturers' representations of the hearing aid compatibility
        rating for handsets in accordance with Commission guidance. In
        support of its assertion, T-Mobile provides a copy of a document
        titled "2008 Roadmap v9 T-Mobile - Product Development," which
        references the Huawei Tap by its FCC ID and purports to indicate that
        the model has an M3 rating.

     9. T-Mobile's reliance on a preliminary technical specifications sheet
        for the Huawei Tap handset was not reasonable under the circumstances
        here.  For example, in the specifications sheet submitted by
        T-Mobile, many of the handset model's technical specifications are
        incomplete (e.g., including the notations "need to clarify," "screen
        shots not ready," "Partial support Pending on TMO clarification," and
        "TBD"). The record shows that there was ample information available
        to T-Mobile from the manufacturer establishing that the Huawei
        handset was not hearing aid-compatible.  Specifically, Huawei's early
        submissions to the Commission in connection with the equipment
        authorization of the handset, the equipment authorization itself, the
        device user manual prepared by Huawei, and Huawei's hearing aid
        compatibility report for the July 1, 2009 through June 30, 2010
        reporting period all confirm the absence of a hearing aid-compatible
        rating.  Therefore, T-Mobile's decision to rely on a preliminary spec
        sheet to the exclusion of numerous sources of more accurate
        information that were readily available from the manufacturer was
        unreasonable and taken at its own peril.  

     B. Proposed Forfeiture

    10. Under Section 503(b)(1)(B) 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. To impose such a forfeiture penalty, the
        Commission must issue a notice of apparent liability and the person
        against whom such 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 by a
        preponderance of the evidence that the person has violated the Act or
        a Commission rule. We conclude under this standard that T-Mobile is
        apparently liable for a forfeiture for its apparent willful and
        repeated violations of Sections 20.19(c)(2) and 20.19(d)(2) of the
        Rules.

    11. Section 503(b)(2)(B) of the Act authorizes a forfeiture assessment
        against a common carrier up to $150,000 for each violation, or for
        each day of a continuing violation, up to a maximum of $1,500,000 for
        a single act or failure to act. In exercising such authority, we are
        required to take into account "the nature, circumstances, extent, and
        gravity of the violation and, with respect to the violator, the
        degree of culpability, any history of prior offenses, ability to pay,
        and such other matters as justice may require."

    12. The Commission's Forfeiture Policy Statement and Section 1.80 of the
        Rules do not establish a base forfeiture amount for violations of the
        hearing aid-compatible handset requirements set forth in Section
        20.19 of the Rules. The fact that the Forfeiture Policy Statement
        does not specify a base amount in no way suggests, however, that a
        forfeiture should not be imposed. The Forfeiture Policy Statement
        states that "... any omission of a specific rule violation from the
        ... [forfeiture guidelines] ... should not signal that the Commission
        considers any unlisted violation as nonexistent or unimportant."  The
        Commission retains the discretion, moreover, to depart from the
        Forfeiture Policy Statement and issue forfeitures  on a case-by-case
        basis, under its general forfeiture authority contained in Section
        503 of the Act.

    13. In determining the appropriate forfeiture amount for violation of the
        hearing aid-compatible handset deployment requirements, we take into
        account that these requirements serve to ensure that consumers with
        hearing loss have access to advanced telecommunications services. In
        adopting the hearing aid compatibility rules, the Commission
        underscored the strong and immediate need for such access, stressing
        that individuals with hearing loss should not be denied the public
        safety and convenience benefits of digital wireless telephony.
        Moreover, as the Commission has noted, the demand for hearing
        aid-compatible handsets is likely to increase with the growing
        reliance on wireless technology and with the increasing median age of
        our population.

    14. In prior cases decided on delegated authority since at least 2008,
        the Bureau generally has applied a base forfeiture amount of $15,000
        on a per handset model basis, identifying the calendar month within
        the statute of limitations where the service provider or manufacturer
        fell the furthest short of the required benchmark. The Bureau then
        applied the $15,000 per handset base forfeiture only with respect to
        the handset shortages in that calendar month_the so-called "highest
        handset shortfall approach."

    15. Both the Commission and the Bureau, however, are concerned that the
        "highest handset shortfall" approach does not adequately reflect the
        nature and scope of the violations of hearing aid compatibility
        rules. As the Bureau has previously indicated, the failure to make
        compatible handsets available to consumers actually prevents hearing
        aid users from accessing digital wireless communications. After
        careful consideration, we conclude that the highest handset shortfall
        approach could yield anomalous results contrary to the critical
        policy goals at stake.

    16. It is counterintuitive, for example, that a company with more
        violations (taking into account the number of months in which the
        violations occur) would be assessed the same base forfeiture as a
        competitor with fewer violations overall. To illustrate, take two
        carriers that were out of compliance with the deployment requirements
        for an entire calendar year, both of which had the greatest handset
        shortfall (of five handsets) in December. Assume that Carrier A is
        down five handsets for the entire year and Carrier B was short only
        one handset for the first 11 months of that year. Using the Bureau's
        current approach, both Carriers A and B would receive the same base
        forfeiture of $75,000 (5 handsets x $15,000). The current approach,
        by focusing only on the single month with the greatest handset
        shortfall, does not take into account the fact that consumers may
        have been denied an adequate choice of compatible handsets for a
        period of time well beyond that particular month.

    17. Moreover, we are troubled that failing to capture all the handset
        shortages during a calendar year could lead to inappropriately low
        base forfeiture amounts and provide little incentive to comply. If
        the existing base forfeiture approach-using the highest handset
        shortfall-were applied to the facts and circumstances of this case,
        the resulting base forfeiture amount would be inadequate to deter
        continuing noncompliance. Indeed, if a carrier was short five
        handsets in one month, the current approach would provide little
        incentive to quickly reduce the shortfall given that the likely
        forfeiture would remain the same whether the carrier was short five
        or one handsets the next month. Here, T-Mobile was out of compliance
        with the hearing aid-compatible handset deployment requirements on
        the WCDMA air interface through the entire 24-month period, January
        2009 to December 2010. During this extended period of noncompliance,
        T-Mobile was short by a total of 52 handset models-a deficiency which
        gave potentially large number of consumers with hearing disabilities
        far fewer choices of compatible handsets than the minimum numbers
        required by our rules.

    18. Furthermore, while T-Mobile made available to consumers without
        hearing loss a wide variety of handset offerings (as many as 20
        handset models in 2009 and 25 handset models in 2010), T-Mobile
        apparently failed to offer to consumers experiencing hearing loss
        even the minimum number of hearing aid-compatible handset models
        required by the rules during those two years. T-Mobile was aware, or
        should have been aware, of its compliance problems when it submitted
        the 2009 wireless hearing aid compatibility status report. Rather
        than addressing the handset shortages, however, it continued to
        violate the Commission's rules for an additional year. In fact,
        T-Mobile's compliance with the deployment benchmarks not only failed
        to improve in 2010, but significantly worsened with respect to its
        M3-rated handset offerings.

    19. Recognizing that "our hearing aid compatibility rules provide people
        who use hearing aids and cochlear implants with continuing access to
        the most advanced and innovative technologies as science and markets
        develop," we find that a more nuanced base forfeiture methodology is
        warranted in order to more fully reflect the significance of the
        violations at issue and to better deter future noncompliance with
        these critical rules. In this regard, we are mindful that the
        wireless hearing aid compatibility rules have been in place for
        almost a decade and that carriers have had more than sufficient
        opportunity to structure compliance programs and ensure that they
        meet our requirements.

    20. Given the potentially substantial and tangible impact on consumers
        with hearing loss, we will continue to apply the $15,000 per handset
        base amount. However, for the reasons explained above, we will apply
        this per handset base amount to each failure to offer a hearing
        aid-compatible handset during each month of the calendar year, rather
        than to a limited subset of such handset shortages as the Bureau did
        previously.  We will implement this approach consistent with our
        obligation to consider the nature and circumstances of each
        particular case and the other statutory factors in section
        503(b)(2)(E) of the Act.  We recognize that there may be instances
        where the violator's size or inability to pay may be particularly
        salient factors.  Section 503 gives us ample discretion
        to consider such circumstances and adjust the forfeiture amount
        accordingly.

    21. Consequently, and consistent with Section 503(b)(6) of the Act, we
        start with a base forfeiture of $570,000 (38 handset models x
        $15,000) for T-Mobile's apparent failure to offer to consumers the
        required number of M3-rated handset models that operate on the WCDMA
        air interface in willful and repeated violation of Section
        20.19(c)(2) of the Rules. We also conclude that a base forfeiture of
        $210,000 (14 handset models x $15,000) is warranted for T-Mobile's
        apparent failure to offer to consumers the required number of
        T3-rated handset models that operate on the WCDMA air interface in
        willful and repeated violation of Section 20.19(d)(2) of the Rules.

    22. These base forfeiture amounts, however, are subject to adjustment.
        Consistent with the Forfeiture Policy Statement and Section
        503(b)(2)(E) of the Act, we find that an upward adjustment of the
        $780,000 base forfeiture amount is warranted. T-Mobile is a
        sophisticated Tier I carrier with 33 million subscribers and the
        buying power to procure any number of wireless hearing aid-compatible
        handsets from equipment manufacturers. In addition, as the Commission
        made clear in the Forfeiture Policy Statement, it is appropriate to
        impose higher forfeitures than the base amounts on large or highly
        profitable entities, such as T-Mobile, to ensure that the forfeiture
        serves as an effective deterrent against their future noncompliance.
        T-Mobile reported more than $21 billion in total annual revenues and
        equipment sales of more than $2.4 billion in 2009 and 2010. We also
        note, however, that the severity of the apparent violations is
        somewhat mitigated by the fact that T-Mobile disclosed the 2010
        handset deployment shortfall several months early, which assisted the
        Bureau in timely investigating this matter. We note that but for
        T-Mobile's cooperation the upward adjustment would have been
        significantly higher.

    23. In view of all the factual circumstances presented and after weighing
        the upward and downward adjustment factors (including the T-Mobile's
        ability to pay as well as the company's timely disclosure of certain
        of the violations), we propose a total forfeiture of $819,000 against
        T-Mobile for apparently willfully and repeatedly failing to comply
        with the hearing aid-compatible handset deployment requirements set
        forth in Sections 20.19(c)(2) and 20.19(d)(2) of the Rules.

   IV. ORDERING CLAUSES

     5. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the
        Act and Section 1.80 of the Rules, T-Mobile USA, Inc. is NOTIFIED of
        its APPARENT LIABILITY FOR A FORFEITURE in the amount of eight
        hundred and nineteen thousand dollars ($819,000) for willful and
        repeated violations of Sections 20.19(c)(2) and 20.19(d)(2) of the
        Rules.

     6. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the Rules,
        within thirty (30) calendar days after the release date of this
        Notice of Apparent Liability for Forfeiture, T-Mobile USA, Inc. SHALL
        PAY the full amount of the proposed forfeiture or SHALL FILE a
        written statement seeking reduction or cancellation of the proposed
        forfeiture.

     7. Payment of the forfeiture must be made by check or similar
        instrument, payable to the order of the Federal Communications
        Commission. The payment must include the NAL/Account Number and FRN
        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. Payment by wire transfer may be made to ABA Number
        021030004, receiving bank TREAS/NYC, and account number 27000001. For
        payment by credit card, an FCC Form 159 (Remittance Advice) must be
        submitted. When completing the FCC Form 159, enter the NAL/Account
        number in block number 23A (call sign/other ID), and enter the
        letters "FORF" in block number 24A (payment type code). Requests for
        full payment under an installment plan should be sent to: Chief
        Financial Officer -- Financial Operations, 445 12th Street, S.W.,
        Room 1-A625, Washington, D.C. 20554. Please contact the Financial
        Operations Group Help Desk at 1-877-480-3201 or Email:
        ARINQUIRIES@fcc.gov with any questions regarding payment procedures.
        T-Mobile USA, Inc. must also send electronic notification to Pamera
        Hairston at Pamera.Hairston@fcc.gov, Linda Nagel at
        Linda.Nagel@fcc.gov, and Samantha Peoples at Sam.Peoples@fcc.gov on
        the date said payment is made.

     8. The written statement seeking reduction or cancellation of the
        proposed forfeiture, 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 Rules. The written
        statement must be mailed to the Office of the Secretary, Federal
        Communications Commission, 445 12th Street, S.W., Washington, D.C.
        20554, ATTN: Enforcement Bureau - Spectrum Enforcement Division, and
        must include the NAL/Acct. No. referenced in the caption. The
        statement also should be emailed to Pamera Hairston at
        Pamera.Hairston@fcc.gov and to Linda Nagel at Linda.Nagel@fcc.gov.

     9. The Commission will not consider reducing or canceling a forfeiture
        in response to a claim of inability to pay unless the petitioner
        submits: (1) federal tax returns for the most recent three-year
        period; (2) financial statements prepared according to generally
        accepted accounting practices; or (3) some other reliable and
        objective documentation that accurately reflects the petitioner's
        current financial status. Any claim of inability to pay must
        specifically identify the basis for the claim by reference to the
        financial documentation submitted.

    10. IT IS FURTHER ORDERED that a copy of this Notice of Apparent
        Liability for Forfeiture shall be sent by first class mail and
        certified mail return receipt requested to Kathleen O'Brien Ham, Vice
        President, Regulatory Affairs, T-Mobile USA, Inc., 401 9th St, NW
        Suite 550, Washington, DC 20004 and to counsel to T-Mobile USA, Inc.,
        David H. Solomon, Esq., Wilkinson Barker Knauer, LLP, 2300 N Street,
        N.W., Suite 700, Washington, D.C. 20037.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

                                   APPENDIX A

       2009 T-Mobile Hearing Aid-Compatible Handset Offerings (M3 Rating)

                              WCDMA Air Interface


                     Hearing                                                                               
                       Aid-       Hearing                                                                  
            Total   Compatible Aid-Compatible                                                              
  Period   Handsets  Handsets     Handsets    Compliance?                                                  
           Offered   Offered      Required                                                                 
                                                                                                           
                       (M3      (M3 rating)                                                                
                     rating)                                                                               

  January     7         3                         No                                                       
   2009                                                                                                    

 February                                                                                                  
   1-14,      8         4                                                                                  
   2009                                                                                                    

 February                                                                                                  
  15-28,      8         4                                                                                  
   2009                                                                                                    

   March      8         4                                                Yes                               
   2009                                                                                                    

   April      8         4       of the total                  At least       Yes                           
   2009                          number of                     50% of                                      

 May 2009     8         4      offered or at                  number of          Yes                       

 June 2009    8         4      handset models                  models                Yes                   

 July 2009    11        4        (1/1/09 -                      or at                    No                

  August      14        4                                      handset                      No             
   2009                                                        models                                      

 September    15        5                                     (2/15/09                         No          
   2009                                                           -                                        

  October     15        5                                                                         No       
   2009                                                                                                    

 November     20        7                                                                            No    
   2009                                                                                                    

 December     19        6                                                                               No 
   2009                                                                                                    


                                   APPENDIX B

       2010 T-Mobile Hearing Aid-Compatible Handset Offerings (M3 Rating)

                              WCDMA Air Interface


                     Hearing                                                                          
                       Aid-       Hearing                                                             
            Total   Compatible Aid-Compatible                                                         
  Period   Handsets  Handsets     Handsets    Compliance?                                             
           Offered   Offered      Required                                                            
                                                                                                      
                       (M3      (M3 rating)                                                           
                     rating)                                                                          

  January     18        6                         No                                                  
   2010                                                                                               

 February                                                                                             
   1-14,      18        6                                                                             
   2010                                                                                               

 February                                                                                             
  15-28,      18        6                                                                             
   2010                                                                                               

   March      20        6                                               No                            
   2010                                                                                               

   April      17        5       of the total                 At least      No                         
   2010                          number of                    50% of                                  

 May 2010     17        5      offered or at                 number of        No                      

 June 2010    24        7      handset models                 models             No                   

 July 2010    24        9        (1/1/10 -                     or at                No                

  August      22        6                                     handset                  No             
   2010                                                       models                                  

 September    23        7                                    (2/15/10                     No          
   2010                                                          -                                    

  October     23        8                                                                    No       
   2010                                                                                               

 November     25        9                                                                       No    
   2010                                                                                               

 December     24        9                                                                          No 
   2010                                                                                               


                                   APPENDIX C

       2009 T-Mobile Hearing Aid-Compatible Handset Offerings (T3 Rating)

                              WCDMA Air Interface


                     Hearing                                                                          
                       Aid-       Hearing                                                             
            Total   Compatible Aid-Compatible                                                         
  Period   Handsets  Handsets     Handsets    Compliance?                                             
           Offered   Offered      Required                                                            
                                                                                                      
                       (T3      (T3 rating)                                                           
                     rating)                                                                          

  January     7         2                         No                                                  
   2009                                                                                               

 February                                                                                             
   1-14,      8         2                                                                             
   2009                                                                                               

 February                                                                                             
  15-28,      8         2                                                                             
   2009                                                                                               

   March      8         2                                               No                            
   2009                         At least 1/3                                                          

   April      8         2       of the total                    1/3        No                         
   2009                          number of                                                            

 May 2009     8         1        offered or                    total          No                      

 June 2009    8         1        at least 3                   handset            No                   

 July 2009    11        1                                     offered               No                

  August      14        1         2/14/09)                                             No             
   2009                                                      at least                                 

 September    15        2                                     models                      No          
   2009                                                                                               

  October     15        2                                        -                           No       
   2009                                                      12/31/09)                                

 November     20        4                                                                       No    
   2009                                                                                               

 December     19        4                                                                          No 
   2009                                                                                               


                                   APPENDIX D

       2010 T-Mobile Hearing Aid-Compatible Handset Offerings (T3 Rating)

                              WCDMA Air Interface


                     Hearing                                                                               
                       Aid-       Hearing                                                                  
            Total   Compatible Aid-Compatible                                                              
  Period   Handsets  Handsets     Handsets    Compliance?                                                  
           Offered   Offered      Required                                                                 
                                                                                                           
                       (T3      (T3 rating)                                                                
                     rating)                                                                               

  January     18        4                         No                                                       
   2010                                                                                                    

 February                                                                                                  
   1-14,      18        4                                                                                  
   2010                                                                                                    

 February                                                                                                  
  15-28,      18        4                                                                                  
   2010                                                                                                    

   March      20        4                                               No                                 
   2010                         At least 1/3                                                               

   April      17        4       of the total                    1/3        No                              
   2010                          number of                                                                 

 May 2010     17        4        offered or                    total          No                           

 June 2010    24        6        at least 5                   handset            No                        

 July 2010    24        8                                     offered               Yes                    

  August      22        6                                                               No                 
   2010                           2/14/10)                   at least                                      

 September    23        7                                     models                       Yes             
   2010                                                                                                    

  October     23        7                                        -                             Yes         
   2010                                                      12/31/10)                                     

 November     25        7                                                                          Yes     
   2010                                                                                                    

 December     24        7                                                                              Yes 
   2010                                                                                                    


   T-Mobile is a Tier I carrier. Tier I carriers are nationwide wireless
   radio service providers. See Revision of the Commission's Rules to Ensure
   Compatibility with Enhanced 911 Emergency Calling Systems, Phase II
   Compliance Deadlines for Non-Nationwide CMRS Carriers, Order to Stay, 17
   FCC Rcd 14841, 14847-48, paras. 22-23 (2002). T-Mobile offers service over
   the Global System for Mobile Communications (GSM) and Wideband Code
   Division Multiple Access (WCDMA) a.k.a. Universal Mobile
   Telecommunications System (UMTS) air interfaces.

   47 C.F.R. S: 20.19(c)(2), (d)(2).

   See infra note 65 and accompanying text.

   Amendment of the Commission's Rules Governing Hearing Aid-Compatible
   Mobile Handsets, Policy Statement and Second Report and Order and Further
   Notice of Proposed Rulemaking, 25 FCC Rcd 11167, 11174, para. 18 (2010)
   (2010 Policy Statement).

   Section 68.4(a) of the Commission's Rules Governing Hearing Aid-Compatible
   Telephones, Report and Order, 18 FCC Rcd 16753 (2003); Erratum, 18 FCC Rcd
   18047 (2003) (Hearing Aid Compatibility Order);  Order on Reconsideration
   and Further Notice of Proposed Rulemaking, 20 FCC Rcd 11221 (2005). The
   Commission adopted these requirements for digital wireless telephones
   under the authority of the Hearing Aid Compatibility Act of 1988, codified
   at Section 710(b)(2)(B) of the Communications Act of 1934, as amended (the
   Act), 47 U.S.C. S: 610(b)(2)(B).

   See Hearing Aid Compatibility Order,  18 FCC Rcd at 16777, para. 56. See
   also 47 C.F.R. S: 20.19(b)(1), (2). The Hearing Aid Compatibility Order
   described the acoustic coupling and inductive coupling (telecoil) modes as
   follows:

   In acoustic coupling mode, the microphone picks up surrounding sounds,
   desired and undesired, and converts them into electrical signals. The
   electrical signals are amplified as needed and then converted back into
   sound by the hearing aid speaker. In telecoil mode, with the microphone
   turned off, the telecoil picks up the audio signal-based magnetic field
   generated by the voice coil of a dynamic speaker in hearing aid-compatible
   telephones, audio loop systems, or powered neck loops. The hearing aid
   converts the magnetic field into electrical signals, amplifies them as
   needed, and converts them back into sound via the speaker. Using a
   telecoil avoids the feedback that often results from putting a hearing aid
   up against a telephone earpiece, can help prevent exposure to over
   amplification, and eliminates background noise, providing improved access
   to the telephone.

   Hearing Aid Compatibility Order,  18 FCC Rcd at 16763, para. 22.

   As subsequently amended, Section 20.19(b)(1) provides that, for the period
   beginning January 1, 2010, a wireless handset is deemed hearing
   aid-compatible for radio frequency interference if, at a minimum, it meets
   the M3 rating associated with the technical standard set forth in the
   standard document "American National Standard Methods of Measurement of
   Compatibility between Wireless Communication Devices and Hearing Aids,"
   ANSI C63.19-2007 (June 8, 2007) (ANSI C63.19-2007), except that grants of
   certification issued before January 1, 2010 under earlier versions of ANSI
   C63.19 remain valid for hearing aid compatibility purposes. 47 C.F.R. S:
   20.19(b)(1). Section 20.19(b)(2) provides that, for the period beginning
   January 1, 2010, a wireless handset is deemed hearing aid-compatible for
   inductive coupling if, at minimum, it meets the T3 rating associated with
   the technical standard set forth in ANSI C63.19-2007, except that grants
   of certification issued before January 1, 2010 under earlier versions of
   ANSI C63.19 remain valid for hearing aid compatibility purposes. 47 C.F.R.
   S: 20.19(b)(2). A recently adopted further amendment to Section 20.19(b)
   will permit manufacturers to test handsets for hearing aid compatibility
   using the 2011 version of the ANSI standard (ANSI C63.19-2011) as an
   alternative to ANSI C63.19-2007.  See Amendment of the Commission's Rules
   Governing Hearing Aid-Compatible Mobile Handsets, Third Report and Order,
   DA 12-550 (WTB/OET rel. Apr. 9, 2012).

   See Amendment of the Commission's Rules Governing Hearing Aid-Compatible
   Mobile Handsets, First Report and Order, 23 FCC Rcd 3406, 3419, paras.
   35-36 (2008) (Hearing Aid Compatibility First Report and Order), Order on
   Reconsideration and Erratum, 23 FCC Rcd 7249 (2008). These requirements do
   not apply to service providers and manufacturers that meet the de minimis
   exception. See Hearing Aid Compatibility First Report and Order, 23 FCC
   Rcd at 3413, para. 20; 47 C.F.R. S: 20.19(e).

   See Hearing Aid Compatibility First Report and Order, 23 FCC Rcd 3406,
   3419, paras. 35-36 (stating that the hearing aid compatibility handset
   deployment requirements apply on a per air interface basis).

   The term "air interface" refers to the technical protocol that ensures
   compatibility between mobile radio service equipment, such as handsets,
   and the service provider's base stations. Currently, the leading air
   interfaces include GSM, WCDMA a.k.a. UMTS, Code Division Multiple Access
   (CDMA), and Integrated Digital Enhanced Network (iDEN).

   See Hearing Aid Compatibility First Report and Order, 23 FCC Rcd at 3419,
   para. 35; 47 C.F.R. S: 20.19(c)(2).

   See Hearing Aid Compatibility First Report and Order, 23 FCC Rcd at 3419,
   para. 36; 47 C.F.R. S: 20.19(d)(2).

   See supra note 11.

   See supra note 12.

   See supra note 11.

   See supra note 12.

   See T-Mobile USA, Inc. Hearing Aid Compatibility Report, Docket No. 07-250
   (Jan. 14, 2010), available at
   http://wireless.fcc.gov/hac_documents/100317/T-Mobile%20USA_164.PDF (2009
   Report).

   See http://transition.fcc.gov/oet/ea/fccid/.

   See supra note 10 (explaining that WCDMA and GSM are two technical
   protocols that permit a handset to communicate with a service provider's
   base station). Specifically, with respect to certain handsets operating
   over the WCDMA air interface, T-Mobile's 2009 Report indicated that the
   Huawei Tap (FCC ID QISU7519) is rated M3 when Commission records show that
   the model is not rated for hearing aid compatibility; that the Research in
   Motion Blackberry 8220 (FCC ID L6ARBY40GW) is rated M3/T3 when Commission
   records show that the model has an M3/T4 rating; and that the Sony
   Ericsson TM747 (FCC ID PY7A3880030) is rated M3/T3 when Commission records
   show the model has an M3/T4 rating. Because the Blackberry 8220 and Sony
   Ericsson TM747 handset models meet the minimum requirements for hearing
   aid compatibility, the noted discrepancies had no impact on our analysis
   herein. The Bureau's investigation revealed similar inaccuracies with
   respect to certain handset models that operate only over the GSM air
   interface. Specifically, T-Mobile's 2009 Report indicated that the
   Research in Motion Blackberry 8900 (FCC ID L6ARBZ40GW) is not rated for
   hearing aid compatibility while Commission records show that the model has
   an M3 rating; and that the Nokia 3711 (FCC ID PPIRM-511) is rated M3/T3
   while Commission records show that the model has an M3/T4 rating. We have
   carefully considered all of this information, including the hearing aid
   compatibility ratings from the OET database that would be more favorable
   to T-Mobile than the ratings in its own submission.

   See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
   Enforcement Bureau, Federal Communications Commission, to Kathleen O'Brien
   Ham, Vice President, Federal Regulatory Affairs, T-Mobile USA, Inc. (Sept.
   10, 2010) (LOI).

   See Letter from David H. Solomon, Esq., Wilkinson Barker Knauer, LLP,
   Counsel to T-Mobile USA, Inc., to Linda M. Nagel, Spectrum Enforcement
   Division, Enforcement Bureau, Federal Communications Commission (Sept. 30,
   2010). In response to follow-up questions regarding its corporate
   structure, T-Mobile filed a supplemental response on February 22, 2011.
   See Letter from David H. Solomon, Esq., Wilkinson Barker Knauer, LLP,
   Counsel to T-Mobile USA, Inc., to Linda M. Nagel, Spectrum Enforcement
   Division, Enforcement Bureau, Federal Communications Commission (Feb. 22,
   2011).

   Id. at 1-3.

   T-Mobile filed its Hearing Aid Compatibility Status Report for the January
   1, 2010 to December 31, 2010 reporting period on January 18, 2011; its
   disclosure of possible deployment violations was made prior to this
   filing. See T-Mobile USA, Inc. Hearing Aid Compatibility Report, Docket
   No. 07-250 (Jan. 18, 2011), available at
   http://wireless.fcc.gov/hac_documents/110210/5940157_186.PDF (2010
   Report).

   To permit a full and fair investigation of this matter, the Bureau and
   T-Mobile entered into tolling agreements to toll the statute of
   limitations until April 15, 2012 for apparent violations that occurred
   after October 31, 2009. See, e.g., Tolling Agreement Extension, File No.
   EB-10-SE-127, executed by and between John D. Poutasse, Acting Chief,
   Spectrum Enforcement Division, Enforcement Bureau, Federal Communications
   Commission, and David H. Solomon, Esq., Wilkinson Barker Knauer, LLP,
   Counsel to T-Mobile USA, Inc. (Dec. 16, 2011).

   All of T-Mobile's handsets for 2009 and 2010 either operated only over the
   GSM air interface or were capable of operating over both the GSM and WCDMA
   air interfaces. Based on information provided in the 2009 Report and 2010
   Report, T-Mobile has demonstrated its compliance with the deployment
   benchmarks applicable to handset models that operate over the GSM air
   interface.

   See supra Table 1.

   Id.

   See Appendix A, 2009 T-Mobile Hearing Aid-Compatible Handset Offerings (M3
   Rating) (indicating that in January 2009, T-Mobile offered seven WCDMA
   handset models, only three of which were hearing aid-compatible for
   acoustic coupling, and that between July 1, 2009 and December 31, 2009,
   T-Mobile offered between 11 and 20 WCDMA handset models, only four to
   seven of which were hearing aid-compatible for  acoustic coupling).

   See supra Table 1.

   See Appendix B, 2010 T-Mobile Hearing Aid-Compatible Handset Offerings (M3
   Rating) (indicating that between January 1, 2010 and December 31, 2010,
   T-Mobile offered between 18 and 25 WCDMA handset models, only five to nine
   of which were hearing aid-compatible for acoustic coupling).

   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. 47 U.S.C. S: 312(f)(1). The legislative history of
   Section 312(f)(1) of the Act clarifies that this definition of willful
   applies to both Sections 312 and 503(b) of the Act, H.R. Rep. No. 97-765,
   97th Cong. 2d Sess. 51 (1982), and the Commission has so interpreted the
   term in the Section 503(b) context. See Southern California Broadcasting
   Co., Memorandum Opinion and Order, 6 FCC Rcd 4387, 4388, para. 5 (1991),
   recon. denied, 7 FCC Rcd 3454 (1992) (Southern California); see also
   Telrite Corporation, Notice of Apparent Liability for Forfeiture, 23 FCC
   Rcd 7231, 7237, para. 12 (2008); Regent USA, Notice of Apparent Liability
   for Forfeiture, 22 FCC Rcd 10520, 10523, para. 9 (2007); San Jose
   Navigation, Inc., Forfeiture Order, 22 FCC Rcd 1040, 1042, para. 9 (2007),
   consent decree ordered, Order and Consent Decree, 25 FCC Rcd 1494 (2010).

   Section 312(f)(2) of the Act, which also applies to forfeitures assessed
   pursuant to Section 503(b) 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." 47 U.S.C. S: 312(f)(2). See Callais Cablevision, Inc., Notice of
   Apparent Liability for Forfeiture, 16 FCC Rcd 1359, 1362 (2001); Southern
   California, 6 FCC Rcd at 4388.

   See supra Table 1.

   See Appendix C, 2009 T-Mobile Hearing Aid-Compatible Handset Offerings (T3
   Rating) (indicating that between January 1 and February 14, 2009, T-Mobile
   offered either seven or eight WCDMA handset models, only two of which were
   hearing-aid compatible for inductive coupling, and that between February
   15 and December 31, 2009, T-Mobile offered between eight and 20 WCDMA
   handset models, only one to four of which were hearing aid- compatible for
   inductive coupling).

   See supra Table 1.

   See Appendix D, 2010 T-Mobile Hearing Aid-Compatible Handset Offerings (T3
   Rating) (indicating that between January 1 and June 30, 2010, T-Mobile
   offered between 17 and 24 WCDMA handset models, only four to six of which
   were hearing aid-compatible for inductive coupling, and that in August
   2010, T-Mobile offered 22 WCDMA handset models, only six of which were
   hearing aid-compatible for inductive coupling).

   LOI Response at 1-2 (citing Hearing Aid Compatibility First Report and
   Order, 23 FCC Rcd at 3445-46, para. 98 and claiming that its reliance on
   Huawei's representations was consistent with Commission guidance).

   Id. at Exhibit 1.

   See
   https://apps.fcc.gov/oetcf/eas/reports/ViewExhibitReport.cfm?mode=Exhibits&RequestTimeout=500&

   calledFromFrame=N&application_id=352140&fcc_id='QISU7519' (test reports
   submitted with the Huawei Tap handset model's application for equipment
   authorization showing that the model apparently was not tested for hearing
   aid compatibility).

   See
   https://apps.fcc.gov/oetcf/tcb/reports/Tcb731GrantForm.cfm?mode=COPY&RequestTimeout=500&tcb_cod

   e=&application_id=352140&fcc_id=QISU7519 (grant of authorization for
   Huawei Tap handset model showing that the model is not rated for hearing
   aid compatibility).

   See https://apps.fcc.gov/eas/GetApplicationAttachment.html?id=1167422
   (user manual for Huawei Tap handset model providing no indication that the
   model is rated for hearing aid compatibility).

   See Futurewei Technologies, Inc. dba Huawei Technologies, Hearing Aid
   Compatibility Status Report (July 15, 2010), available at
   http://wireless.fcc.gov/hac_documents/100720/Futurewei%20Technologies21.PDF
   (reporting that the Huawei Tap handset model is not rated for hearing aid
   compatibility).

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

   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, para. 4 (2002).

   47 U.S.C. S: 503(b)(2)(B). The Commission has amended section 1.80(b)(2)
   of the Rules, 47 C.F.R. S: 1.80(b)(2), three times to increase the maximum
   forfeiture amounts, in accordance with the inflation adjustment
   requirements contained in the Federal Civil Penalties Inflation Adjustment
   Act of 1990, 28 U.S.C. S: 2461 note, as amended by the Debt Collection
   Improvement Act of 1996, 31 U.S.C. S: 3701 note. The most recent inflation
   adjustment took effect September 2, 2008 and applies to violations that
   occur after that date. See Amendment of Section 1.80 of the Commission's
   Rules and Adjustment of Forfeiture Maxima to Reflect Inflation, 23 FCC Rcd
   9845, 9847 (2008) (adjusting the maximum statutory amounts for common
   carriers from $130,000/$1,300,000 to $150,000/$1,500,000); 73 Fed. Reg.
   44663-5.

   47 U.S.C. S: 503(b)(2)(E). See also 47 C.F.R. S: 1.80(b)(5), Note to
   paragraph (b)(5): Section II. Adjustment Criteria for Section 503
   Forfeitures.

   See 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, Memorandum Opinion and
   Order, 15 FCC Rcd 303 (1999) (Forfeiture Policy Statement); 47 C.F.R. S:S:
   1.80, 20.19.

   Forfeiture Policy Statement, 12 FCC Rcd at 17099, para. 22.

   Id.

   Hearing Aid Compatibility Order, 18 FCC Rcd at 16755, para. 4.

   Id. at 16756, para. 5 (noting that approximately one in ten Americans, 28
   million, have some level of hearing loss, that the proportion increases
   with age, and that the number of those affected will likely grow as the
   median age increases). See also Section 68.4(a) of the Commission's Rules
   Governing Hearing Aid-Compatible Telephones, Report on the Status of
   Implementation of the Commission's Hearing Aid Compatibility Requirements,
   22 FCC Rcd 17709, 17719 para. 20 (2007) (noting, just four years later,
   that the number of individuals with hearing loss in the United States was
   "at an all time high of 31 million people-with that number expected to
   reach approximately 40 million people at the end of [2010]").

   See, e.g., NEP Cellcorp, 24 FCC Rcd at 13, para. 11; Pinpoint Wireless, 23
   FCC Rcd at 9295, para. 11; Smith Bagley, Inc., Notice of Apparent
   Liability for Forfeiture, 24 FCC Rcd 14113, 14117-18, para. 11 (Enf. Bur.,
   Spectrum Enf. Div. 2009), response pending; South Canaan, 23 FCC Rcd at
   24-25, para. 11.

   See, e.g., Keystone Wireless LLC d/b/a Immix Wireless, Notice of Apparent
   Liability for Forfeiture, 26 FCC Rcd 15210, 15216-17, para. 13 (Enf. Bur.
   2011), response received; (Keystone) (finding that Keystone missed the T3
   deployment benchmark by four handset models in October 2010, and assessing
   a base forfeiture of $60,000 for such shortage); see also Missouri RSA 5
   Partnership d/b/a Chariton Valley Wireless Services, 26 FCC Rcd 15237,
   15244, para 13 (Enf. Bur. 2011) (response received) (Chariton Valley)
   (finding that Chariton Valley missed the T3 deployment benchmark by three
   handsets in October 2010, and assessing a base forfeiture of $45,000 for
   such shortage).  In recent years, the Bureau also has upwardly adjusted
   these base forfeitures based on the duration of the violation.  See, e.g.,
   Keystone, 26 FCC Rcd at 15217, para. 14 (upwardly adjusting the base
   forfeiture because Keystone was out of compliance with the M3 deployment
   benchmark for nine and one-half months and with the T3 deployment
   benchmark for eleven and one-half months); see also Chariton Valley, 26
   FCC Rcd at 15244, para. 14 (upwardly adjusting the base forfeiture because
   Chariton Valley was out of compliance with the M3 deployment benchmark for
   seven months and with the T3 deployment benchmark for ten consecutive
   months).

   See South Canaan Cellular Communications Company, L.P, Notice of Apparent
   Liability for Forfeiture, 23 FCC Rcd 20, 24 para. 11 (Enf. Bur., Spectrum
   Enf. Div. 2008) (forfeiture paid) (South Canaan) (finding that "a
   violation of the labeling requirements, while serious because it deprives
   hearing aid users from making informed choices, is less egregious than a
   violation of the handset requirements because failure to make compliant
   handsets available actually deprives hearing aid users from accessing
   digital wireless communications").

   Applying the highest handset shortfall approach in this case would have
   resulted in the assessment of a base forfeiture of only $165,000 (11
   handset models x $15,000).  Specifically, the calculation would only have
   reflected the handset shortages in December 2009 (three M3 handsets short;
   one T3 handset short) and in March 2010 (four M3 handsets short and three
   T3 handsets short). 

   See Appendices A through D (indicating that T-Mobile was short a total of
   five M3-rated handset models in November and December 2009, 33 M3-rated
   handset models from January through December 2010, two T3-rated handset
   models in November and December 2009, and 12 T3-rated handset models from
   January through December 2010).

   See Appendices A through D (showing that during the 2009 and 2010 calendar
   years, T-Mobile failed to offer the requisite number of M3-rated and
   T3-rated handset models during each calendar month). While non-hearing
   aid-compatible handsets are technically available to all consumers, these
   handsets may not function effectively with hearing aids and can create
   excessive feedback and "noise." See also Hearing Aid Compatibility Order,
   18 FCC Rcd at 16756 para. 6 ("[D]igital wireless phones can cause
   interference to hearing aids and cochlear implants because of
   electromagnetic energy emitted by the phone's antenna, backlight, or other
   components. This interference can be significant enough to prevent
   individuals with hearing aids or cochlear implants from using digital
   wireless phones and services. In addition, most wireless phones do not
   internally provide the capability to inductively couple with hearing aids
   containing telecoils, as wireline phones do.").

   Forfeiture Policy Statement, 12 FCC Rcd at 17092 - 93, para. 8
   (recognizing that "guidelines will provide the needed measure of
   predictability to the process and uniformity to our administrative
   sanctions while retaining flexibility for the Commission to act
   appropriately in particular cases").

   2010 Policy Statement, 25 FCC Rcd at 11168 (noting that the Commission's
   wireless hearing aid compatibility rules are "intended to ensure that
   consumers with hearing loss are able to access wireless communications
   service through a wide selection of handsets without experiencing
   disabling interference or other technical obstacles").

   See, e.g., South Canaan, 23 FCC Rcd at 25, para. 12 & n.33 (cautioning
   carriers that "that future enforcement actions may consider all failures
   to comply with our hearing aid compatibility rules . . . as continuing
   violations").

   See Appendices A and B (indicating that T-Mobile was short a total of five
   M3-rated handset models in November and December 2009, and 33 M3-rated
   handset models from January through December 2010). In calculating the
   number of handset shortages in 2009, we focus on the company's failure to
   offer to consumers the requisite number of M3-rated and T3-rated handset
   models in November and December 2009, when T-Mobile missed the benchmarks
   by a total of seven handset models. See supra paras. 9 and 10. While we
   find that T-Mobile also was apparently out of compliance with the hearing
   aid-compatible handset deployment requirements for the entire 2009
   calendar year (see supra paras. 9-10) and that these violations are
   continuing violations, we exercise our prosecutorial discretion to focus
   on the apparent violations that occurred after October 31, 2009. This is
   consistent with the tolling agreements negotiated with T-Mobile under the
   Bureau's prior forfeiture calculation framework, which tolled the statute
   of limitations for apparent violations that occurred after this date.

   See Appendices C and D (indicating that T-Mobile was short a total of two
   T3-rated handset models in November and December 2009, and 12 T3-rated
   handset models from January through December 2010).

   Specifically, the Commission stated:

   [W]e recognize that for large or highly profitable communication entities,
   the base forfeiture amounts ... are generally low. In this regard, we are
   mindful that, as Congress has stated, for a forfeiture to be an effective
   deterrent against these entities, the forfeiture must be issued at a high
   level. For this reason, we caution all entities and individuals that,
   independent from the uniform base forfeiture amounts ..., we intend to
   take into account the subsequent violator's ability to pay in determining
   the amount of a forfeiture to guarantee that forfeitures issued against
   large or highly profitable entities are not considered merely an
   affordable cost of doing business. Such large or highly profitable
   entities should expect in this regard that the forfeiture amount set out
   in a Notice of Apparent Liability against them may in many cases be above,
   or even well above, the relevant base amount.

   Forfeiture Policy Statement, 12 FCC Rcd at 17099-100, para. 24.

   See T-Mobile USA Reports Fourth Quarter 2010 Results, February 25, 2011,
   available at
   http://s.tmocache.com/Cms/Files/Published/0000BDF20016F5DD010312E2BDE4AE9B/5657

   114502E70FF3012B5A79D454F2C8/file/TMUSQ42010PressReleaseFinalv2.pdf (last
   visited April 13, 2012);

   see also T-Mobile USA Reports Fourth Quarter 2011 Operating Results, Press
   Release, February 23, 2012, available at
   http://www.tmobile.com/Cms/Files/Published/0000BDF20016F5DD010312E2BDE4AE9B/565711

   4502E70FF30135AD3E32E64A86/file/TMUS%20Q4%202011%20Press%20Release%20FINAL.pdf
   (last visited Mar. 16, 2012). In 2011, T-Mobile served nearly 33.2 million
   customers, and reported total annual revenues of $20.6 billion and
   equipment sales of $1.9 billion. Id.

   See Petracom of Texarkana, LLC, Forfeiture Order, 19 FCC Rcd 8096,
   8097-8098, para. 6 (Enf. Bur. 2004). See also SES Americom, Inc, Notice of
   Apparent Liability for Forfeiture, 24 FCC Rcd 2694, 2697, para. 11 (Enf.
   Bur., Spectrum Enforcement Div. 2009) (forfeiture paid); Side By Side,
   Inc., Notice of Apparent Liability for Forfeiture, 23 FCC Rcd 898, 901,
   para. 11 (Enf. Bur., Spectrum Enf. Div. 2008); Lazer Broadcasting Corp.,
   Notice of Apparent Liability for Forfeiture, 21 FCC Rcd 8710, 8712, para.
   10 (Enf. Bur., Spectrum Enf. Div. 2005) (forfeiture paid).

   See, e.g., Locus Telecommunications, Inc., Notice of Apparent Liability
   for Forfeiture and Admonishment, 26 FCC Rcd 17073, 17079-80, para. 13
   (Enf. Bur. 2011) (upwardly adjusting the base forfeiture to reflect the
   carrier's noncompliance during the entire 2010 calendar year and the
   carrier's ability to pay); Centennial Communications Corporation, Notice
   of Apparent Liability for Forfeiture, 23 FCC Rcd 9406, 9412-13 P: 13 (Enf.
   Bur. 2008) (forfeiture paid) (2008 Centennial NAL) (emphasizing that
   large, highly profitable entities can expect forfeitures that are higher
   than the base amount); SunCom Wireless, Inc., Notice of Apparent Liability
   for Forfeiture, 23 FCC Rcd 8681, 8688 P: 17 (Enf. Bur. 2008) (forfeiture
   paid) (SunCom Wireless) (violations of the hearing aid compatibility
   handset requirements by Tier II carriers are more egregious, warranting a
   higher forfeiture amount than that assessed against smaller Tier III
   carriers and serves as an effective deterrent against their future
   noncompliance with the hearing aid compatibility handset requirements ).

   47 C.F.R. S: 20.19(c)(2), (d)(2).

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

   47 C.F.R. S: 1.80.

   Id. S: 20.19(c)(2), (d)(2).

   Id. S:S: 1.80(f)(3), 1.16.

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   Federal Communications Commission  FCC 12-39

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   Federal Communications Commission  FCC 12-39