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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of TerraCom, Inc. ) ) ) ) ) File No.: EB-12-IH-1351 Acct.
No.: 201332080015 FRN: 0010-1037-45
ORDER
Adopted: February 26, 2013 Released: February 26, 2013
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau (Bureau) of the Federal Communications
Commission and TerraCom, Inc. (TerraCom). The Consent Decree
terminates and resolves an investigation by the Bureau against
TerraCom for possible violations of Sections 54.403(a), 54.407,
54.409, 54.413, and 54.414 of the Commission's rules (Rules)^
concerning TerraCom's failure to maintain adequate records and to
submit accurate claims for reimbursement, and the collection of
Lifeline and Link Up support to which it was not entitled.
2. The Bureau and TerraCom have negotiated the Consent Decree that
resolves this matter, including a detailed, three-year compliance plan
requirement. A copy of the Consent Decree is attached hereto and
incorporated herein by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.
4. Based solely on the record developed to date in this investigation and
in the absence of material new evidence relating to this matter, we
conclude that the investigation raises no substantial or material
questions of fact as to whether TerraCom possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), 4(j), and
503(b) of the Communications Act,^ and Sections 0.111 and 0.311 of the
Rules,^ the Consent Decree attached to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by first class mail and certified mail, return receipt
requested, to Jonathan D. Lee, Esq., J.D. Lee Consulting, LLC, 1776 I
Street, N.W., Suite 900, Washington, D.C. 20006.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of TerraCom, Inc. ) ) ) ) ) File No.: EB-12-IH-1351 Acct.
No.: 201332080015 FRN: 0010-1037-45
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and
TerraCom, Inc., by their authorized representatives, hereby enter into
this Consent Decree for the purpose of terminating the Enforcement
Bureau's investigation into whether TerraCom, Inc. violated Sections
54.403(a), 54.407, 54.409, 54.413, and 54.414 of the Commission's
rules,^ concerning the company's failure to maintain adequate records
and to submit accurate claims for reimbursement for revenues it was
forgoing in providing Lifeline and Link Up service, and for the
collection of Lifeline and Link Up support to which it was not
entitled.
I. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
S 151 et seq.
b. "Adopting Order" means an Order of the Bureau adopting the terms of
this Consent Decree without change, addition, deletion, or
modification.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
e. "Communications Laws" means collectively, the Act, the Rules, and the
published and promulgated orders and decisions of the Commission to
which TerraCom is subject by virtue of its business activities.
f. "Compliance Plan" means the compliance obligations, programs, and
procedures described in this Consent Decree at paragraph 14.
g. "Covered Employees" means all employees and agents of TerraCom who
perform, or supervise, oversee, or manage the performance of, duties
that relate to TerraCom's responsibilities under the Communications
Laws, including the Lifeline Rules.
h. "Effective Date" means the date on which the Bureau releases the
Adopting Order.
i. "ETC" means an eligible telecommunications carrier designated pursuant
to 47 U.S.C. S 214(e).
j. "Investigation" means the investigation initiated by the Bureau in
File No. EB-12-IH-1351 regarding possible violations of Sections
54.403(a), 54.407, 54.409, 54.413, and 54.414 of the Rules.
k. "Lifeline" is a federal benefit program under which an ETC offers a
retail telecommunications service to qualifying low-income consumers,
who pay reduced or no monthly service charges as a result of
application of the Lifeline support from the USF.
l. "Lifeline Rules" means the federal regulatory obligations concerning
the provision of Lifeline Service and Link Up Service.
m. "Lifeline Service" means telecommunications service offered under the
Lifeline program.
n. "Link Up" is a federal benefit program under which an ETC offers
qualifying low-income consumers discounts on the initial costs of
installing telephone service.
o. "Link Up Service" means the ETC's act of commencing telecommunications
service to a single telecommunications connection offered under the
Link Up program.
p. "Operating Procedures" means the standard, internal operating
procedures and compliance policies established by TerraCom to
implement the Compliance Plan.
q. "Parties" means TerraCom, Inc. and the Bureau, each of which is a
"Party."
r. "Rules" means the Commission's regulations found in Title 47 of the
Federal Regulations.
s. "TerraCom" or "Company" means TerraCom, Inc. and its
predecessors-in-interest and successors-in-interest.
t. "USF" means the Universal Service Fund.
II. BACKGROUND
3. Lifeline and Link Up are federal benefit programs that ensure the
availability of telecommunications services for eligible low-income
households by providing discounts on basic telephone service.^ These
programs are part of the USF and help qualifying consumers have the
opportunities and security that phone service brings, including being
able to connect to jobs, family members, and emergency services.
Lifeline provides a single discounted wireline or wireless phone
service to each qualifying low-income consumer's household.^ Link Up
provides some of those consumers with discounts on the initial costs
of installing telephone service.^ An ETC designated under the Act ^ ^
that provides Lifeline or Link Up Service may seek and receive
reimbursement from the USF for revenues it forgoes in providing the
discounted services to eligible customers.^ Section 254(e) of the Act
provides that an ETC that receives such support "shall use that
support only for the provision, maintenance, and upgrading of
facilities and services for which the support is intended."^
4. The Lifeline Rules establish explicit requirements that ETCs must meet
to receive federal low-income support.^ Section 54.407(a) of the Rules
states that Lifeline support "shall be provided directly to an
eligible telecommunications carrier, based on the number of actual
qualifying low-income consumers it serves."^ The Rules define a
"qualifying low-income consumer" as one who--among other things--"must
not already be receiving a Lifeline service;" in addition, "there must
not be anyone else in the subscriber's household subscribed to a
Lifeline service."^ Section 54.403(a) of the Rules specifies that an
ETC may receive $9.25 per month for each qualifying low-income
consumer receiving Lifeline Service and up to an additional $25 per
month if the consumer resides on Tribal lands.^ Until April 2012, each
ETC could also receive Link Up support, a one-time reimbursement for
installation costs associated with each new qualifying consumer's
account.^ ETCs are required to pass these discounts along to eligible
low-income consumers.
5. In addition to verifying customer eligibility,^ ETCs have an ongoing
duty to ensure that they provide Lifeline service to no more than one
qualified consumer per household.^ This obligation requires, among
other steps, that each ETC search its own internal records before
signing up a customer for Lifeline Service to ensure that the ETC does
not already provide Lifeline Service to someone in the same
household.^ Additionally, an ETC must implement policies and
procedures to ensure that its Lifeline subscribers are eligible to
receive Lifeline services.^ An ETC receives duplicative support, in
violation of the Rules, when it concurrently receives Lifeline support
or Link Up support for two or more subscribers in a household.^
6. The Universal Service Administrative Company (USAC) administers the
Lifeline and Link Up programs. ETCs that provide qualifying low-income
consumers with Lifeline or Link Up discounts file FCC Form 497 with
USAC, either quarterly or monthly, to request support that reimburses
them for providing service at the discounted rates. An ETC's FCC Form
497 documents the number of low-income customers served and the total
amount of Lifeline support claimed by the ETC during the specified
time period. USAC reviews the claims for reimbursement for consistency
with the Lifeline Rules, and then disburses support to the ETC in
accordance with its review. An ETC may revise its Form 497 data within
12 months after it is submitted. In addition to reviewing claims
submitted by ETCs, USAC conducts oversight audits and in-depth
validations (IDVs) to ensure compliance with the Lifeline Rules. In
2011, the Commission directed USAC to begin conducting IDVs relating
to Lifeline support after oversight audits had revealed that several
ETCs were seeking duplicative support.^
7. On August 26, 2004, the Oklahoma Corporation Commission (Oklahoma
Commission) designated TerraCom, incorporated and headquartered in
Oklahoma, as an ETC to provide wireline Lifeline and Link Up Service
in that state. The Oklahoma Commission authorized TerraCom to provide
wireless Lifeline and Link Up Service in Oklahoma on August 18, 2011.^
8. USAC conducted an IDV of the Lifeline benefits received by TerraCom in
Oklahoma for the month of June, 2012. The IDV revealed that TerraCom
had received duplicative Lifeline and Link Up support to such extent
that further inquiry was warranted. Based on the IDV results, the
Bureau issued a Letter of Inquiry (LOI) to TerraCom on August 28,
2012.^ The Company responded to the LOI on September 27, 2012, and
supplemented its responses several times thereafter.^
III. TERMS OF AGREEMENT
9. Adopting Order. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Bureau by
incorporation of such provisions by reference in the Adopting Order.
10. Jurisdiction. TerraCom agrees that the Bureau has jurisdiction over it
and the matters contained in this Consent Decree and that the Bureau
has the authority to enter into and adopt this Consent Decree.
11. Effective Date; Violations. The Parties agree that this Consent Decree
shall become effective on the Effective Date. As of the Effective
Date, the Adopting Order and this Consent Decree shall have the same
force and effect as any other order of the Commission. Any violation
of the Adopting Order or of the terms of this Consent Decree shall
constitute a separate violation of a Commission order, entitling the
Commission to exercise any rights and remedies attendant to the
enforcement of a Commission order.
12. Termination of Investigation. In express reliance on the covenants and
representations in this Consent Decree and to avoid further
expenditure of public resources, the Bureau agrees to terminate its
Investigation. In this regard, TerraCom expressly represents that it
is unaware of any intentional effort to submit inaccurate Form 497
data to USAC in order to obtain duplicative support. In consideration
for the termination of the Investigation, TerraCom agrees to the
terms, conditions, and procedures contained herein. The Bureau further
agrees that, in the absence of new material evidence, the Bureau will
not use the facts developed in this Investigation through the
Effective Date, or the existence of this Consent Decree, to institute,
on its own motion, any new proceeding, formal or informal, or take any
action on its own motion against TerraCom concerning the matters that
were the subject of the Investigation. The Bureau also agrees that,
based solely on the record developed to date in this Investigation,
and in the absence of new material evidence it will not use the facts
developed in this Investigation through the Effective Date, or the
existence of this Consent Decree, to institute on its own motion any
proceeding, formal or informal, or take any action on its own motion
against TerraCom with respect to TerraCom's basic qualifications,
including its character qualifications, to be a Commission licensee or
hold Commission authorizations.
13. Compliance Officer. Within thirty (30) calendar days after the
Effective Date, TerraCom shall designate a senior corporate manager
with the requisite corporate and organizational authority to serve as
a Compliance Officer and to discharge the duties set forth below. The
person designated as the Compliance Officer shall be responsible for
developing, implementing, and administering the Compliance Plan and
ensuring that TerraCom complies with the terms and conditions of the
Compliance Plan and this Consent Decree. In addition to the general
knowledge of the Communications Laws necessary to discharge his/her
duties under this Consent Decree, the Compliance Officer shall have
specific knowledge of the Lifeline Rules prior to assuming his/her
duties.
14. Compliance Plan. For purposes of settling the matters set forth
herein, TerraCom agrees that it shall, within sixty (60) calendar
days after the Effective Date, develop and implement a Compliance Plan
designed to ensure future compliance with the Communications Laws, and
with the terms and conditions of this Consent Decree. With respect to
the Lifeline Rules, TerraCom shall implement the following components:
a. Operating Procedures. Within sixty (60) calendar days after the
Effective Date, TerraCom shall establish Operating Procedures that all
Covered Employees shall follow to help ensure TerraCom's compliance
with the Lifeline Rules. In addition to implementing the required
policies and procedures in Section 54.410 of the Rules, TerraCom's
Operating Procedures shall include internal procedures and policies
specifically designed to ensure that TerraCom keeps accurate records
of revenues it forgoes in providing Lifeline Service; that it provide
Lifeline Service only to qualifying low-income consumers; and that it
submits accurate claims for reimbursement for providing Lifeline
Service. TerraCom shall also develop a Compliance Checklist that
describes the steps that a Covered Employee must follow to ensure
compliance with the Lifeline Rules.
b. Compliance Manual. Within sixty (60) calendar days after the Effective
Date, the Compliance Officer shall develop and distribute a Compliance
Manual to all Covered Employees. The Compliance Manual shall explain
the Communications Laws that apply to TerraCom, including the Lifeline
Rules, and set forth the Operating Procedures that Covered Employees
shall follow to help ensure TerraCom's compliance with the Lifeline
Rules. TerraCom shall periodically review and revise the Compliance
Manual as necessary to ensure that the information set forth therein
remains current and accurate. TerraCom shall distribute any revisions
to the Compliance Manual promptly to Covered Employees. The Compliance
Manual will require personnel, including Covered Employees, to contact
TerraCom's Compliance Officer and, if appropriate, regulatory legal
counsel, with any questions or concerns that arise with respect to
TerraCom's obligations under the Lifeline Rules.
c. Compliance Training Program. TerraCom shall establish and implement a
Compliance Training Program on compliance with the Communications
Laws, including the Lifeline Rules, and the Operating Procedures. As
part of the Compliance Training Program, Covered Employees shall be
advised of TerraCom's obligation to report any noncompliance with the
Lifeline Rules under paragraph 15 of this Consent Decree and shall be
instructed on how to disclose noncompliance to the Compliance Officer.
All Covered Employees shall be trained pursuant to the Compliance
Training Program within sixty (60) calendar days after the Effective
Date. Any person who becomes a Covered Employee at any time after the
initial Compliance Training Program shall be trained within thirty
(30) calendar days after the date such person becomes a Covered
Employee. TerraCom shall repeat the compliance training on an annual
basis, and shall periodically review and revise the Compliance
Training Program as necessary to ensure that it remains current and
complete and to enhance its effectiveness.
15. Reporting Noncompliance. TerraCom shall report any noncompliance with
the Lifeline Rules and with the terms and conditions of this Consent
Decree within fifteen (15) calendar days after discovery of such
noncompliance. Such reports shall include a detailed explanation of
(i) each instance of noncompliance; (ii) the steps that TerraCom has
taken or will take to remedy such noncompliance; (iii) the schedule on
which such remedial actions will be taken; and (iv) the steps that
TerraCom has taken or will take to prevent the recurrence of any such
noncompliance. All reports of noncompliance shall be submitted to the
Chief, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission, Room 3-C330, 445 12th Street, S.W.
Washington, D.C. 20554, with a copy submitted electronically to
Theresa Z. Cavanaugh at Terry.Cavanaugh@fcc.gov, Pamela S. Kane at
Pamela.Kane@fcc.gov, William Kehoe at William.Kehoe@fcc.gov, and Mindy
Littell at Mindy.Littell@fcc.gov.
16. Compliance Reports. TerraCom shall file Compliance Reports with the
Commission ninety (90) calendar days after the Effective Date, twelve
(12) months after the Effective Date, twenty-four (24) months after
the Effective Date, and thirty-six (36) months after the Effective
Date.
a. Each Compliance Report shall include a detailed description of
TerraCom's efforts during the relevant period to comply with the terms
and conditions of this Consent Decree and the Lifeline Rules. In
addition, each Compliance Report shall include a certification by the
Compliance Officer, as an agent of and on behalf of TerraCom, stating
that the Compliance Officer has personal knowledge that TerraCom (i)
has established and implemented the Compliance Plan; (ii) has utilized
the Operating Procedures since the implementation of the Compliance
Plan; and (iii) is not aware of any instances of noncompliance with
the terms and conditions of this Consent Decree, including the
reporting obligations set forth in paragraph 15 of this Consent
Decree.
b. The Compliance Officer's certification shall be accompanied by a
statement explaining the basis for such certification and shall comply
with Section 1.16 of the Rules^ and be subscribed to as true under
penalty of perjury in substantially the form set forth in Section
1.16.
c. If the Compliance Officer cannot provide the requisite certification,
the Compliance Officer, as an agent of and on behalf of TerraCom,
shall provide the Commission with a detailed explanation of the
reason(s) why and describe fully (i) each instance of noncompliance;
(ii) the steps that TerraCom has taken or will take to remedy such
noncompliance, including the schedule on which proposed remedial
actions will be taken; and (iii) the steps that TerraCom has taken or
will take to prevent the recurrence of any such noncompliance,
including the schedule on which such preventive action will be taken.
d. All Compliance Reports shall be submitted to the Chief, Investigations
& Hearings Division, Enforcement Bureau, Federal Communications
Commission, Room 4-C330, 445 12th Street, S.W., Washington, D.C.
20554, with a copy submitted electronically to Theresa Z. Cavanaugh at
Terry.Cavanaugh@fcc.gov, Pamela S. Kane at Pamela.Kane@fcc.gov,
William Kehoe at William.Kehoe@fcc.gov, and Mindy Littell at
Mindy.Littell@fcc.gov.
17. Termination Date. Unless stated otherwise, the obligations set forth
in paragraphs 13 through 16 of this Consent Decree shall expire
thirty-six (36) months after the Effective Date.
18. Section 208 Complaints; Subsequent Investigations. Nothing in this
Consent Decree shall prevent the Commission or its delegated authority
from adjudicating complaints filed pursuant to Section 208 of the Act^
against TerraCom or its affiliates for alleged violations of the Act,
or for any other type of alleged misconduct, regardless of when such
misconduct took place. The Commission's adjudication of any such
complaint will be based solely on the record developed in that
proceeding. Except as expressly provided in this Consent Decree, this
Consent Decree shall not prevent the Commission from investigating new
evidence of noncompliance by TerraCom with the Communications Laws.
19. Reimbursement to the Universal Service Fund. TerraCom agrees that it
shall reimburse the Universal Service Fund in an amount totaling Four
Hundred Two Thousand Seven Hundred Sixty dollars ($402,760), which
constitutes the amount of support received by the Company to which it
was not entitled, plus accrued interest (Reimbursement Payment).
TerraCom represents that it has submitted to USAC revised Form 497
reimbursement requests, and other appropriate documentation, to enable
recovery of this Reimbursement Payment (except that the accrued
interest portion of the Reimbursement Payment shall be made to USAC
within thirty (30) calendar days after the Effective Date). TerraCom
acknowledges and agrees that upon execution of this Consent Decree,
the Reimbursement Payment shall become a "Claim" or "Debt" as defined
in 31 U.S.C. S 3701(b)(1).^
20. Voluntary Contribution. TerraCom agrees that it will make a voluntary
contribution to the United States Treasury in the aggregate amount of
Four Hundred Forty Thousand dollars ($440,000) (Voluntary
Contribution). Such Voluntary Contribution shall be made in
installments (each an Installment Payment). The first Installment
Payment in the amount of One Hundred Ten Thousand dollars ($110,000)
is due within thirty (30) calendar days after the Effective Date. The
balance of the Voluntary Contribution will be made in three payments
of One Hundred Ten Thousand dollars ($110,000), payable on July 1,
2013, October 1, 2013, with the final payment due on January 1, 2014
(Maturity Date). TerraCom acknowledges and agrees that upon execution
of this Consent Decree, the Voluntary Contribution and each
Installment Payment shall become a "Claim" or "Debt" as defined in 31
U.S.C. S 3701(b)(1).^ Upon an Event of Default (as defined below), all
procedures for collection as permitted by law may, at the Commission's
discretion, be initiated. In addition, TerraCom agrees that it will
make the first and all subsequent Installment Payments in United
States Dollars without further demand or notice by the dates specified
above. TerraCom shall also send electronic notification of payment to
Theresa Z. Cavanaugh at Terry.Cavanaugh@fcc.gov, Pamela S. Kane at
Pamela.Kane@fcc.gov, William Kehoe at William.Kehoe@fcc.gov, and Mindy
Littell at Mindy.Littell@fcc.gov on the date said Installment Payment
is made. The Installment Payment must be made by check or similar
instrument, wire transfer, or credit card, and must include the
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.
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.
21. Event of Default. TerraCom agrees that an Event of Default shall occur
upon the failure by TerraCom to pay the full amount of any Installment
Payment on or before the due date specified in this Consent Decree.
22. Interest, Charges for Collection, and Acceleration of Maturity Date.
After an Event of Default has occurred under this Consent Decree, the
then unpaid amount of the Voluntary Contribution shall accrue
interest, computed using the U.S. Prime Rate in effect on the date of
the Event of Default plus 4.75 percent, from the date of the Event of
Default until payment in full. Upon an Event of Default, the then
unpaid amount of the Voluntary Contribution, together with interest,
as aforesaid, any penalties permitted and/or required by the law,
including but not limited to 31 U.S.C. S 3717 and administrative
charge(s), plus the costs of collection, litigation, and attorneys'
fees, shall become immediately due and payable, without notice,
presentment, demand, protest, or notice of protest of any kind, all of
which are waived by TerraCom.
23. Waivers. TerraCom waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent Decree
and the Adopting Order, provided the Bureau issues the Adopting Order
as defined herein. TerraCom shall retain the right to challenge
Commission interpretation of the Consent Decree or any terms contained
herein. If either Party (or the United States on behalf of the
Commission) brings a judicial action to enforce the terms of the
Adopting Order, neither TerraCom nor the Commission shall contest the
validity of the Consent Decree or the Adopting Order, and TerraCom
shall waive any statutory right to a trial de novo. TerraCom hereby
agrees to waive any claims it may otherwise have under the Equal
Access to Justice Act,^ relating to the matters addressed in this
Consent Decree.
24. Invalidity. In the event that this Consent Decree in its entirety is
rendered invalid by any court of competent jurisdiction, it shall
become null and void and may not be used in any manner in any legal
proceeding.
25. Subsequent Rule or Order. The Parties agree that if any provision of
the Consent Decree conflicts with any subsequent Rule or order adopted
by the Commission (except an order specifically intended to revise the
terms of this Consent Decree to which TerraCom does not expressly
consent) that provision will be superseded by such Rule or Commission
order.
26. Successors and Assigns. TerraCom agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
27. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties with
respect to the Investigation. The Parties further agree that this
Consent Decree does not constitute either an adjudication on the
merits or a factual or legal finding or determination regarding any
compliance or noncompliance with the Communications Laws, or any other
laws. The Parties also agree that this Consent Decree does not
constitute an admission of liability by TerraCom or a concession by
the Commission that its investigation was not well-founded.
28. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
29. Paragraph Headings. The headings of the paragraphs in this Consent
Decree are inserted for convenience only and are not intended to
affect the meaning or interpretation of this Consent Decree.
30. Authorized Representative. The individual signing this Consent Decree
on behalf of TerraCom represents and warrants that he is authorized by
TerraCom to execute this Consent Decree and to bind TerraCom to the
obligations set forth herein. The FCC signatory represents that she is
signing this Consent Decree in her official capacity and that she is
authorized to execute this Consent Decree.
31. Counterparts. This Consent Decree may be signed in any number of
counterparts (including by facsimile), each of which, when executed
and delivered, shall be an original, and all of which counterparts
together shall constitute one and the same fully executed instrument.
________________________________ P. Michele Ellison Chief Enforcement
Bureau ________________________________ Date
________________________________ Dale R. Schmick Vice President TerraCom,
Inc. ________________________________ Date
^ 47 C.F.R. SS 54.403(a), 54.407, 54.409, 54.413, 54.414.
^ 47 U.S.C. SS 154(i), 154(j), 503(b).
^ 47 C.F.R. SS 0.111, 0.311.
^ 47 C.F.R. SS 54.403(a), 54.407, 54.409, 54.413, 54.414.
^ See 47 C.F.R. SS 54.400-54.422.
^ 47 C.F.R. S 54.401. See also 47 C.F.R. S 54.400(h) (defining "household"
as "any individual or group of individuals who are living together at the
same address as one economic unit"); Lifeline and Link Up Reform and
Modernization, Report and Order and Further Notice of Proposed Rulemaking,
27 FCC Rcd 6656, 6760, para. 241 (2012) (Lifeline Reform Order) (noting
that the cost of wireless handsets are not supported by the Lifeline
program).
^ 47 C.F.R. S 54.413(a).
^ 47 U.S.C. S 254(e) (providing that "only an eligible telecommunications
carrier designated under section 214(e) of this title shall be eligible to
receive specific Federal universal service support"); 47 U.S.C. S 214(e)
(prescribing the method by which carriers are designated as ETCs).
^ 47 C.F.R. S 54.403.
^ 47 U.S.C. S 254(e).
^ See 47 U.S.C. S 254(a)-(c), (e); 47 C.F.R. SS 54.400-54.422.
^ 47 C.F.R. S 54.407(a).
^ 47 C.F.R. SS 54.400(a), 54.409(c).
^ 47 C.F.R. S 54.403(a).
^ See 47 C.F.R. S 54.413(a) (amended effective April 1, 2012, to restrict
Link Up support to ETCs serving eligible residents of Tribal lands for
which the ETCs also receive high-cost support); see also 47 C.F.R. S
54.414 (setting forth requirements for ETC reimbursement for Tribal Link
Up provided pursuant to Section 54.413 of the Rules).
^ ETCs must obtain a certification, under penalty of perjury, that the
consumer and the other members of his or her household do not already
receive Lifeline-supported service. See 47 C.F.R. S 54.410(d)(3)(vi).
^ See Lifeline and Link Up Reform and Modernization, Report and Order, 26
FCC Rcd 9022, 9026, para. 7 (2011) (Lifeline Duplicates Order).
^ See Lifeline Reform Order, 27 FCC Rcd at 6691, para. 78.
^ 47 C.F.R. S 54.410(a).
^ 47 C.F.R. S 54.400(g).
^ See Lifeline Duplicates Order, 26 FCC Rcd at 9026, para. 7.
^ See Oklahoma Corporation Commission, "Eligible Telecommunications
Carriers,"
http://www.occeweb.com/pu/ETC%20Designation/2012-11-01ETCInformationreport.pdf
http://www.occeweb.com/pu/ETC%20Designation/2012-11-01ETCInformationreport.pdfhttp://www.occeweb.com/pu/ETC%20Designation/2012-11-01ETCInformationreport.pdf
(last visited Feb. 22, 2013). TerraCom also provides Lifeline service in
Arkansas, Indiana, Maryland, Nevada, Texas, West Virginia, Iowa,
Louisiana, Puerto Rico, and Wisconsin.
^ See Letter of Inquiry from Theresa Z. Cavanaugh, Chief, Investigations
and Hearings Division, FCC Enforcement Bureau, to Jonathan D. Lee, Esq.,
Counsel for TerraCom (dated Aug. 28, 2012) (on file in EB-12-IH-1351)
(LOI).
^ See TerraCom LOI Responses (submitted Sept. 27, 2012) and supplemental
responses submitted by TerraCom on Oct. 22, Oct. 23, Oct. 24, Nov. 5, Dec.
5, and Dec. 14, 2012.
^ 47 C.F.R. S 1.16.
^ 47 U.S.C. S 208.
^ Debt Collection Improvement Act of 1996, Pub. L. No. 104-134, 110 Stat.
1321, 1358 (Apr. 26, 1996).
^ Id.
^ An FCC Form 159 and detailed instructions for completing the form may be
obtained at http://www.fcc.gov/Forms/Form159/159.pdf.
^ See 5 U.S.C. S 504; 47 C.F.R. Part 1, Subpart K.
Federal Communications Commission DA 13-285
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Federal Communications Commission DA 13-285