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Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of American Network, Inc. ) ) ) ) ) File No.:
EB-TCD-12-00000342 Acct. No.: 201332170010 FRN: 0004294856
ORDER
Adopted: March 19, 2013 Released: March 19, 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 American Network, Inc. (ANI). The Consent Decree
terminates the Bureau's investigation into ANI's compliance with
Section 225 of the Communications Act of 1934, as amended,^ and
Sections 64.604 and 64.611 of the Commission's rules^ concerning the
provision of Telecommunications Relay Services and compensation from
the TRS Fund.
2. The Bureau and ANI have negotiated the terms of the Consent Decree
that resolves the matters in the above-captioned investigation. 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 above referenced
investigation.
4. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 503(b)
of the Communications Act of 1934, as amended,^ and Sections 0.111 and
0.311 of the Commission's rules,^ the Consent Decree attached to this
Order IS ADOPTED.
5. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
6. 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 Russell H. Fox, Mintz, Levin, Cohn, Ferris, Glovsky and
Popeo, P.C., 701 Pennsylvania Ave., NW, Suite 900,
Washington, DC 20004.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison Chief
Enforcement Bureau
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of American Network, Inc. ) ) ) ) ) ) File No.:
EB-TCD-12-00000342 NAL/Acct No.: 201332170010 FRN: 0004294856
CONSENT DECREE
The Enforcement Bureau of the Federal Communications Commission and
American Network, Inc. by their respective authorized representatives,
hereby enter into this Consent Decree for the purpose of terminating the
Bureau's investigation into ANI's provision of Telecommunications Relay
Services and compensation from the TRS Fund, including the Company's
compliance with Section 225 of the Communications Act of 1934, as
amended,^ and Sections 64.604 and 64.611 of the Commission's rules.^
I. DEFINITIONS
1. 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. "ANI" or "Company" means American Network, Inc. and its
predecessors-in-interest and successors-in-interest.
d. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
e. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
f. "Communications Laws" means, collectively, the Act, the Rules, and the
published and promulgated orders and decisions of the Commission to
which ANI was subject to by virtue of its business activities
conducted pursuant to its certification as a provider of
Internet-based TRS eligible to receive reimbursements from the TRS
Fund.
g. "Compliance Reports" mean the reports ANI is required to file with the
Commission pursuant to paragraph 15.
h. "Effective Date" means the date on which the Bureau releases the
Adopting Order.
i. "Internet-based TRS" means IP CTS, IP Relay, and VRS collectively.
j. "IP CTS" means Internet Protocol Captioned Telephone Service, 47
C.F.R. S 64.601(12).
k. "IP Relay" means Internet Protocol Relay Service, 47 C.F.R. S
64.601(a)(13).
l. "Investigation" means investigative measures and reviews undertaken by
the Bureau regarding the Company's compliance with Section 225 of the
Act, 47 U.S.C. S 225 and the TRS Rules in File No.: EB-TCD-12-00000342
(formerly EB-11-TC-021).
m. "Parties" means ANI and the Bureau, each of which is a "Party."
n. "Reimbursement Dates" means the dates on which ANI received
reimbursement from the TRS Fund for minutes handled.
o. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
p. "TRS" means Telecommunications Relay Services, 47 C.F.R. S
64.601(a)(22).
q. "TRS Fund" or "Fund" means the Telecommunications Relay Services Fund,
47 C.F.R. S 64.604(c)(5)(iii).
r. "TRS Fund administrator" or "Administrator" means the entity selected
by the Commission to administer the TRS Fund, 47 C.F.R. S
64.604(c)(5)(iii).
s. "TRS Rules" means the regulations set forth at Section 64.601 through
Section 64.613 of the Rules, 47 C.F.R. SS 64.601 et. seq. and
Commission orders implementing and interpreting 47 U.S.C. S 225 of the
Act, and any other Commission rules and orders applicable to TRS
providers.
t. "Voluntary Contribution" means the payment made by or on behalf of ANI
to the United States Treasury pursuant to this Consent Decree and
described at paragraph 17.
u. "VRS" means Video Relay Service, 47 C.F.R. S 64.601(a)(27).
II. BACKGROUND
2. TRS enables persons who have a hearing or speech impairment to
communicate using voice communications services in a manner that is
functionally equivalent to that of persons without such disabilities.^
Section 225 of the Act requires the Commission to ensure that TRS is
"available, to the extent possible and in the most efficient manner"
to persons with hearing or speech disabilities in the United States.^
In meeting its obligations under the statute, the Commission has
recognized numerous forms of TRS.^
3. TRS users do not pay to use the service. Rather, the cost of providing
TRS is ultimately paid for by the subscribers of telecommunications
and interconnected VoIP services, through a surcharge that providers
of these services impose on the monthly bills of their subscribers.^
These providers pay the monies they collect from the surcharges into
the TRS Fund, which is then used to reimburse eligible TRS providers
for the cost of providing TRS.^ The TRS Rules require TRS providers
seeking compensation from the TRS Fund to submit true and adequate
data to the TRS Fund Administrator, as well as to provide upon request
additional data the Administrator may need to verify payment
requests.^
4. In 2008, the Commission adopted a new numbering system, involving
ten-digit numbers linked to the North American Numbering Plan, for
Internet-based TRS use, and imposed certain new obligations on
Internet-based TRS providers.^ Among other things, the Commission
prohibited, after December 31, 2008, an Internet-based TRS provider
from providing (non-emergency) service to a new user without first
registering that user and assigning him or her a ten-digit number.^
With respect to existing users, the Commission ultimately mandated
that Internet-based providers cease providing (non-emergency) service,
absent registration and assignment of a ten-digit number, after
November 12, 2009.^
5. On January 23, 2012, the Bureau issued a Letter of Inquiry (LOI) and
subpoena to ANI seeking information to assess whether the Company
complied with the TRS Rules and Commission orders governing
Internet-based TRS, including whether the Company had established a
reasonable process for verifying information provided by users
registering for ten-digit numbers.^ The LOI and subpoena required ANI
to submit specific information associated with registrations completed
since January 1, 2009.
6. On February 22, 2012, ANI submitted its response, which indicated that
ANI may have billed the TRS Fund for calls by unregistered
Internet-based TRS users after the date that such conduct was
impermissible.^ ^ In subsequent discussions, the Company acknowledged
that it had determined that ANI's subcontractor failed to register any
IP Relay users but still processed calls and ANI billed the TRS Fund
for them. After conducting an internal review, the Company determined
that it was financially unable to proceed as an ongoing operation and
decided to cease providing TRS.
7. ANI subsequently met with the Bureau for purposes of reaching
agreement to resolve all outstanding issues related to its compliance
with the Act, the Rules, and Commission orders, and terminating the
Bureau's Investigation.
8. The Administrator is currently holding $183,462.65 that is associated
with claims for compensation filed by ANI.
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. ANI 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 defined herein. 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 the
Investigation. In consideration for the termination of the
Investigation, ANI agrees to the terms, conditions, and procedures
contained herein. ANI also agrees that for a period of two years from
the Effective Date, neither the Company nor its principals will engage
in any business activities related to provisioning or otherwise
providing any form of TRS (e.g., offer TRS, manage TRS call centers,
subcontract to provide any services) where the Company or any Company
principal is reimbursed directly or indirectly through payments from
the TRS Fund. The Bureau further agrees that in the absence of new
material evidence, the Bureau will not use the facts developed in the
Investigation through the Effective Date, 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 ANI
concerning the matters that were the subject of the Investigation. The
Bureau also agrees that in the absence of new material evidence it
will not use the facts developed in these Investigations 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 ANI with respect to ANI's basic
qualifications, including its character qualifications, to be a
Commission licensee or certified TRS provider, or to hold Commission
certifications, licenses, or authorizations. The Bureau represents
that, except for the Investigation, it has no other enforcement
investigation or inquiry currently underway against ANI that involves
the same factual allegations underlying the Investigation.
13. Representations; Warranties. ANI warrants that in March 2012, the
Company ceased to provide Internet-based TRS and is no longer
certified as an Internet-based TRS provider. ANI further represents
that the Company does not currently provide any form of TRS, directly
or indirectly. ANI agrees that the Company will notify the Chief,
Telecommunications Consumers Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, SW, Room 4-C224,
Washington, DC 20554, with a copy submitted electronically to Sharon
Lee at sharon.lee@fcc.gov and to [1]fccebaccess@fcc.gov ninety (90)
calendar days prior to providing any form of TRS, directly or as a
contractor.
14. Reporting Noncompliance. ANI shall report any noncompliance with the
TRS 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
each instance of noncompliance. All reports of noncompliance shall be
submitted to the Chief, Telecommunications Consumers Division,
Enforcement Bureau, Federal Communications Commission, 445 12th
Street, SW, Room 4-C224, Washington, DC 20554, with a copy submitted
electronically to Sharon Lee at [2]sharon.lee@fcc.gov and to
[3]fccebaccess@fcc.gov.
15. Compliance Reports. For purposes of settling the matters set forth
herein, ANI agrees to submit to the Commission within thirty (30)
calendar days after the Effective Date of this Consent Decree a
Compliance Report that: (i) identifies the date on which ANI ceased
conducting any TRS business; (ii) includes copies of all notices that
ANI sent to its employees, independent contractors, and Internet-based
TRS users notifying them that ANI closed its TRS business; and (iii)
includes copies of any contracts or agreements that relate to the
sale, use, transfer, or management of call centers, personnel, and the
infrastructure associated with ANI's TRS business. ANI shall also file
a Compliance Report with the Commission six (6) and twelve (12) months
after the Effective Date that: (i) confirms the status of ANI's
business as it relates to TRS and (ii) includes a copy of any
contract(s) and a detailed description of any arrangement(s) the
Company has entered into that relate to TRS. Both the initial and
subsequent compliance reports shall be submitted to the Chief,
Telecommunications Consumer Division, Enforcement Bureau, Federal
Communications, 4-C224, 445 12^th Street, S.W. Washington, D.C. 20554,
with a copy submitted electronically to Richard Hindman at
[4]richard.hindman@fcc.gov and to Sharon Lee at [5]sharon.lee@fcc.gov
and to [6]fccebaccess@fcc.gov.
16. Termination Date. Unless stated otherwise, the obligations set forth
in paragraphs 14 and 15 of this Consent Decree shall expire
twenty-four months (24) months after the Effective Date.
17. Voluntary Contribution. ANI agrees that it will make a Voluntary
Contribution to the United States Treasury in the amount of
$59,019.25. Furthermore, ANI acknowledges and agrees that upon
execution of this Consent Decree, the amount of the Voluntary
Contribution is a "Claim" or "Debt" as defined in 31 U.S.C. S
3701(b)(1).^ The Debt may be fully satisfied by administrative offset
initiated by the Commission on the Effective Date.
18. Reimbursement to the TRS Fund. ANI agrees that it shall make a Refund
Payment to the TRS Fund within thirty (30) calendar days after the
Effective Date totaling $124,443.40, which includes accrued interest
calculated from the Reimbursement Dates. ANI acknowledges and agrees
that upon execution of this Consent Decree, the amount of the Refund
Payment is a "Claim" or "Debt" as defined in 31 U.S.C. S 3701(b)(1).
The Debt may be fully satisfied by administrative offset initiated by
the Commission on the Effective Date.
19. Interest and Charges for Collection. In the event the Debt cannot be
satisfied by administrative offset, then as to any remaining unpaid
balance of the Debt, ANI will have committed an event of default
under this Consent Decree. Thereafter, automatically, and without
further notice, the then entire unpaid amount of the Debt shall accrue
interest at a rate of 15.75% per annum from the date of the event of
default until payment in full. An event of default on either payment
of the Voluntary Contribution or the Refund Payment will result in a
cross default on both amounts. Upon an event of default, the then
unpaid amount of the Debt 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, is accelerated
and shall become immediately due and payable, without notice,
presentment, demand, protest, or notice of protest of any kind, all of
which are waived by ANI. Upon an event of default by nonpayment of the
Debt, all procedures for collection permitted by the Debt Collection
Improvement Act of 1996^ and other provisions of law^ may, at the
Commission's discretion, be initiated.
20. Waivers. ANI 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 an Adopting
Order as defined 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 ANI nor the Commission shall
contest the validity of the Consent Decree or of the Adopting Order,
and ANI shall waive any statutory right to a trial de novo. ANI hereby
agrees to waive any claims it may have under the Equal Access to
Justice Act^ relating to the matters addressed in this Consent Decree.
21. Invalidity. The Parties agree that if a court of competent
jurisdiction renders any of the provisions of the Adopting Order or
the Consent Decree invalid or unenforceable, such invalidity or
unenforceability shall not invalidate or render unenforceable the
entire Adopting Order or Consent Decree, but rather the entire
Adopting Order or Consent Decree shall be construed as if not
containing the particular invalid or unenforceable provision or
provisions, and the rights and obligations of the Parties shall be
construed and enforced accordingly. 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.
22. 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 ANI does not expressly consent)
that provision will be superseded by such Rule or Commission order.
23. Successors and Assigns. ANI agrees that the provisions of this Consent
Decree shall be binding on its successors, assigns, and transferees.
24. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties with
respect to the Investigations. The Parties further agree that this
Consent Decree does not constitute an adjudication on the merits, or a
factual or legal finding or determination regarding any compliance or
noncompliance with the Communications Laws.
25. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
26. 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.
27. Authorized Representative. The individual signing this Consent Decree
on behalf of ANI represents and warrants that he is authorized by ANI
to execute this Consent Decree and to bind ANI to the obligations,
including all payment 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.
28. 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 Kent Charugundla
Chief President
Enforcement Bureau American Network, Inc.
_____________________________________ ___________________________________
Date Date
^ This investigation was originally identified as file number
EB-11-TC-021.
^ 47 U.S.C S 225.
^ 47 C.F.R. SS 64.604, 64.611.
^ 47 U.S.C. SS 154(i), 503(b).
^ 47 C.F.R. SS 0.111, 0.311.
^ The Investigation was originally identified as file number EB-11-TC-021.
^ ^ 47 U.S.C. S 225.
^ ^ 47 C.F.R. SS 64.604, 64.611.
^ See 47 U.S.C. S 225(a)(3). See also 47 C.F.R. S 64.601(a)(22).
^ 47 U.S.C. S 225(b)(1).
^ 47 C.F.R. S 64.601.
^ 47 C.F.R. S 64.604(c)(5) (setting out the method for recovering the
costs of TRS from subscribers of interstate and intrastate
telecommunications, e.g., mobile telephone, operator services, voice
telephone services, toll free number services, international, etc.);
IP-Enabled Services, WC Docket No. 04-36, WT Docket No., 96-198, CG Docket
No. 03-123, CC Docket No. 92-105, Report & Order, 22 FCC Rcd 11275,
11283-291 (2007) (requiring providers of interconnected VoIP services to
contribute to the TRS Fund).
^ 47 U.S.C. S 225(d)(3).
^ 47 C.F.R. SS 64.604(c)(5)(iii)(D), (E).
^ Telecommunications Relay Services and Speech-to-Speech Services for
Individuals with Hearing and Speech Disabilities, CG Docket No. 03-123, WC
Docket No. 05-196, Report and Order and Further Notice of Proposed
Rulemaking, 23 FCC Rcd 11591 (2008) (Internet-Based TRS Order);
Telecommunications Relay Services and Speech-to-Speech Services for
Individuals with Hearing and Speech Disabilities, CG Docket No. 03-123, WC
Docket No. 05-196, Second Report and Order and Order on Reconsideration,
24 FCC Rcd 791 (2008) (Second Internet-Based TRS Report & Order).
^ Internet-Based TRS Report & Order, 23 FCC Rcd at 11610.
^ Telecommunications Relay Services and Speech-to-Speech Services for
Individuals with Hearing and Speech Disabilities, CG Docket No. 03-123; WC
Docket No. 05-196, Order, 24 FCC Rcd 8000, 8002 (2009).
^ See Letter from Richard A. Hindman, Chief, TCD, FCC Enforcement Bureau,
to Kent Charugundla, President, American Network, Inc., (January 23, 2012)
(on file in EB-11-TC-021/EB-TCD-12-00000342).
^ See Letter from Kent Charugundla, President, American Network, Inc., to
Sharon Lee, Deputy Division Chief, TCD, FCC Enforcement Bureau (February
23, 2012) (on file in EB-11-TC-021/EB-TCD-12-00000342).
^ ^ Debt Collection Improvement Act of 1996, Pub. L. No. 104-134, 110
Stat. 1321, 1358 (Apr. 26, 1996).
^ ^ Id. ^
^ ^ See 31 C.F.R. Parts 900-904; 47 C.F.R. S 1.1901, et seq.
^ Equal Access to Justice Act, Pub L. No 96-481, 94 Stat. 2325 (1980)
(codified at 5 U.S.C. S 504); see also 47 C.F.R. SS 1.1501-1.1530.
1
Federal Communications Commission DA 13-444
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Federal Communications Commission DA 13-444
References
Visible links
1. mailto:fccebaccess@fcc.gov
2. mailto:sharon.lee@fcc.gov
3. mailto:fccebaccess@fcc.gov
4. mailto:richard.hindman@fcc.gov
5. mailto:sharon.lee@fcc.gov
6. mailto:fccebaccess@fcc.gov