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Federal Communications Commission DA 16-790
1
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Blue Jay Wireless, LLC
)
)
)
)
)
)
)
File No.:  EB-IHD-14-00017212
FRN:  0021937875
ORDER
Adopted:  July 14, 2016 Released:  July 15, 2016
By the Chief, Enforcement Bureau:
1. The Enforcement Bureau (Bureau) of the Federal Communications Commission 
(Commission) has entered into a Consent Decree to resolve its investigation into whether Blue 
Jay Wireless’s (Blue Jay) Tribal enrollments in Hawaii from November 2013 through August 
2014 violated the rules (Rules) of the Lifeline program.   
2. As part of the Universal Service Fund (USF), the Lifeline program assists 
qualified consumers in obtaining the opportunities and security that phone service brings, 
including connecting to jobs, family members, and emergency services.  An Eligible 
Telecommunications Carrier (ETC), like Blue Jay, may receive $9.25 per month for each 
qualifying low-income consumer receiving Lifeline service (Basic Support), and up to an 
additional $25 per month if the qualifying low-income consumer resides on Tribal Lands, which 
includes the Hawaiian Home Lands (Enhanced Support).
1
  Before receiving such support 
reimbursements, however, an ETC must meet stringent requirements under the Commission’s 
Lifeline Rules.
2
  For example, pursuant to Section 54.410(d)(3) of the Rules, the eligible 
consumer must certify under penalty of perjury to his/her eligibility as a qualifying low-income 
consumer and separately certify under penalty of perjury to his/her residency on Tribal Lands.
3
3. In response to concerns about Blue Jay’s participation in the Lifeline program and 
the high number of Tribal consumers that it had reported on Hawaiian Home Lands, the 
Enforcement Bureau’s USF Strike Force conducted an extensive investigation into the 
company’s compliance with the Commission’s Rules in the State of Hawaii, including the 
accuracy of the Tribal consumer data Blue Jay provided in support of its USF reimbursement 
                                                          
1
See 47 CFR § 54.403(a); 47 CFR § 54.400(a), (e).  See also 47 CFR § 54.409.
2
See 47 CFR §§ 54.400–54.422.
3
See 47 CFR § 54.410(d); see also 2012 Lifeline Reform Order, 27 FCC Rcd at 6709—6713, paras. 111-24. 
Federal Communications Commission DA 16-790
2
requests.  In addition, the Wireline Competition Bureau (WCB) directed the Universal Service 
Administrative Company (USAC) to freeze $918,010 in Lifeline disbursements to Blue Jay for 
the State of Hawaii.
4. This settlement ensures a total of $2,002,000 in reimbursements by Blue Jay to 
the Universal Service Fund, including the company’s forfeiture of the $918,010 in Lifeline 
disbursements that WCB had previously frozen.  Blue Jay also will develop and implement a 
compliance plan to ensure appropriate procedures are incorporated into its business practices to 
prevent the enrollment of ineligible Tribal consumers, including the use of any USAC-approved 
software tool to identify and verify the accuracy of consumers’ self-certification of their 
residency on Tribal Lands.     
5. 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 referenced investigation of Blue Jay.
4
  
6. In the absence of material new evidence relating to this matter, we do not set for 
hearing the question of Blue Jay’s basic qualifications to hold or obtain any Commission license 
or authorization.
5
7. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), and 503(b) of the 
Act
6
and the authority delegated by Sections 0.111 and 0.311 of the Rules,
7
the attached Consent 
Decree IS ADOPTED and its terms incorporated by reference.
8. IT IS FURTHER ORDERED that the above-captioned matter IS 
TERMINATED.
                                                          
4
Investigation means the investigation commenced by the Bureau’s USF Strike Force in File No. EB-IHD-14-
00017212.
5
See 47 CFR § 1.93(b).
6
47 U.S.C. §§ 154(i), 503(b).
7
47 CFR §§ 0.111, 0.311.
Federal Communications Commission DA 16-790
3
9. 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 Mr. David 
Wareikis, President and CEO, Blue Jay Wireless, LLC, 4240 International Parkway, Suite 140, 
Carrollton, TX 75007 and its counsel, John Heitmann, Esq., Kelley Drye & Warren, LLP, 3050 
K Street, NW, Washington, D.C. 20007-5108.
FEDERAL COMMUNICATIONS COMMISSION
Travis LeBlanc
Chief 
Enforcement Bureau
Federal Communications Commission DA 16-790
1
Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Blue Jay Wireless, LLC
)
)
)
)
)
)
)
File No.:  EB-IHD-14-0017212
FRN:  0021937875
CONSENT DECREE
1. The Enforcement Bureau of the Federal Communications Commission and Blue 
Jay Wireless, LLC, by their authorized representatives, hereby enter into this Consent Decree for 
the purpose of terminating the Bureau’s investigation, as defined below, into whether Blue Jay 
Wireless, LLC violated Sections 54.407, 54.409, and 54.410 of the Commission’s rules 
governing the provision of Lifeline service to low-income Tribal consumers in the State of 
Hawaii,
1
from November 2013 through April 2015. 
DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions shall apply:
(a) “Act” means the Communications Act of 1934, as amended.
2
(b) “Adopting Order” means an order of the Bureau adopting the terms of this Consent 
Decree without change, addition, deletion, or modification.
(c) “Basic Support” means Lifeline support of $9.25 per month for eligible Lifeline 
consumers.
(d) “Blue Jay” or “Company” means Blue Jay Wireless, LLC and successors in interest.  
(e) “Bureau” means the Enforcement Bureau of the Federal Communications 
Commission.  
(f) “Commission” and “FCC” mean the Federal Communications Commission and all 
of its bureaus and offices.
(g) “Communications Laws” means collectively, the Act, the Rules, and the published 
and promulgated orders and decisions of the Commission to which Blue Jay is 
subject by virtue of its business activities.
(h) “Compliance Plan” means the compliance obligations, program, and procedures 
described in this Consent Decree at paragraph 20.
                                                          
1
See 47 CFR §§ 54.407, 54.409, 54.410.
2
47 U.S.C. § 151, et seq.
Federal Communications Commission DA 16-790
2
(i) “Covered Employees” means all employees of Blue Jay who perform, or supervise, 
oversee, or manage the performance of, duties that relate to Blue Jay’s 
responsibilities under the Lifeline Rules.
(j) “Covered Third Party” means any non-employee Person, as defined herein, that 
performs services involving the enrollment and de-enrollment of Lifeline 
consumers, or any duties that relate to the Lifeline eligibility and de-enrollment 
rules, pursuant to a contractual relationship or agreement with Blue Jay, including 
any person performing work related to the Lifeline Rules on behalf of Blue Jay.
(k) “Effective Date” means the date by which both the Bureau and Blue Jay have signed 
the Consent Decree.
(l) “Enhanced Support” means Lifeline Tribal support up to an additional $25 per 
month for an eligible Lifeline Tribal consumer. 
(m) “ETC” means an eligible telecommunications carrier designated under, or operating 
pursuant to, Section 214(e) of the Communications Act, as amended, 47 U.S.C. 
§214(e), as eligible to offer and receive support for one or more services that are 
supported by the federal universal support mechanisms.
(n) “Investigation” means the investigation commenced by the Bureau in File No. EB-
IHD-14-00017212 regarding whether Blue Jay violated the Lifeline Rules in the 
State of Hawaii.
(o) “Lifeline Rules” means Title 47, Code of Federal Regulations, Sections 54.400-
54.422, Section 254 of the Act, and Commission orders related to Lifeline service to 
low-income consumers.
(p) “LOI” means the Letter of Inquiry issued by the Bureau to Blue Jay on October 3, 
2014, in the Investigation
(q) “Operating Procedures” means the standard internal operating procedures and 
compliance policies established by Blue Jay to implement the Compliance Plan.
(r) “Parties” means Blue Jay and the Bureau, each of which is a “Party.”
(s) “Person” shall have the same meaning defined in Section 153(39) of the 
Communications Act, as amended, 47 U.S.C. § 153(39).
(t) “Tribal” means Hawaiian Home Lands, which are areas held in trust for Native 
Hawaiians by the state of Hawaii, pursuant to the Hawaiian Homes Commission 
Act, 1920 July 9, 1921, 42 Stat. 108, et. seq., as amended.
3
(u) “USAC” means the Universal Service Administrative Company, which serves as the 
administrator for the federal Universal Service Fund.
4
. 
                                                          
3
See 47 CFR § 54.400(e).
4
See 47 CFR § 54.701.
Federal Communications Commission DA 16-790
3
BACKGROUND
3. Lifeline is part of the federal Universal Service Fund (USF or the Fund) program 
and helps qualified consumers have the opportunities and security that essential communications 
service brings, including being able to connect to jobs, family members, and emergency 
services.
5
  Lifeline service is provided by ETCs designated pursuant to the Act.
6
  An ETC may 
seek and receive reimbursement from the USF for revenues it forgoes in providing the 
discounted services to eligible consumers in accordance with the Rules.  Section 54.403(a) of the 
Lifeline Rules specifies that an ETC may receive $9.25 per month in Basic Support for each 
qualifying low-income consumer receiving Lifeline service, and up to an additional $25 per 
month in Enhanced Support if the qualifying low-income consumer resides on Tribal lands.
7
4. The Lifeline Rules establish explicit requirements that ETCs must meet to receive 
Lifeline support reimbursements.
8
  Section 54.407(b) of the Lifeline Rules provides that “[a]n 
eligible telecommunications carrier may receive Universal Service support reimbursement for 
each qualifying low-income consumer served.”
9
  An ETC may receive both Basic Support for 
each qualifying low-income consumer who meets the eligibility criteria set forth in Section 
54.409 and Enhanced Support for a qualifying low-income consumer who certifies that he or she 
resides on Tribal lands, which includes Hawaiian Home Lands.
10
5. The Lifeline Rules prohibit an ETC from seeking reimbursement for providing 
Lifeline service to a consumer unless the ETC has confirmed the consumer’s eligibility to 
receive Lifeline service.
11
  Section 54.410 requires an ETC to receive a certification of eligibility 
from a subscriber demonstrating that the consumer meets the income-based or program-based 
eligibility criteria for receiving Lifeline service prior to seeking reimbursement from the USF.  If 
Enhanced Support is requested, an ETC must also obtain the subscriber’s certification under 
penalty of perjury as an eligible resident of Tribal lands.
12
An eligible consumer, pursuant to 
Section 54.410(d)(3) of the Lifeline Rules, must certify under penalty of perjury his/her 
eligibility as a qualifying low-income consumer and residency on Tribal lands.
13
The 
Commission has determined that, pursuant to Section 54.410, consumer self-certification is 
                                                          
5
See Lifeline and Link Up Reform and Modernization et al., Report and Order and Further Notice of Proposed 
Rulemaking, WC Dkt. No. 11-42 et al., FCC Rcd 6656, 6662-6666, paras. 11-17 (2012) (2012 Lifeline Reform 
Order); see also 47 CFR §§ 54.400–54.422.
6
See 47 U.S.C. § 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”); see also 47 U.S.C. § 
214(e) (prescribing the method by which carriers are designated as ETCs).
7
See 47 CFR § 54.403(a).
8
See 47 CFR §§ 54.400–54.422.
9
See 47 CFR § 54.407(b).
10
See 47 CFR § 54.400(a), (e); see also 47 CFR § 54.409.
11
See 47 CFR § 54.410(b), (c).
12
See 47 CFR § 54.410(b)-(d).
13
See 47 CFR § 54.410(d)(3); see also 2012 Lifeline Reform Order, 27 FCC Rcd at 6709—6713, paras. 111-24. 
Federal Communications Commission DA 16-790
4
sufficient to meet the residency requirement of Tribal lands Lifeline support.
14
  The Lifeline 
Rules require ETCs to provide thirty (30) days’ notice to subscribers prior to terminating Lifeline 
services if the ETC has a reasonable basis to believe that a Lifeline subscriber no longer meets 
the criteria to qualify as low-income consumer.
15
6. ETCs that provide qualifying low-income consumers with Lifeline discounts file a 
Form 497 with USAC to request reimbursement for providing service at the discounted rates.  
Section 54.407(d) provides that an ETC may receive reimbursement from the Fund if the ETC 
certifies as part of its reimbursement request that it is in compliance with the Lifeline Rules and, 
to the extent required under that subpart, has obtained valid certifications for each consumer for 
whom the ETC seeks reimbursement.
16
  An ETC may revise its Form 497 data upward or 
downward within 12 months after the data is submitted.
17
  The 12-month period to file an 
original or revised Form 497 provides sufficient time for ETCs to ensure their requests for 
support contain accurate and complete consumer data and all other relevant information 
supporting the claim.
18
  
7. Blue Jay is an ETC designated to provide wireless Lifeline service in Hawaii.  
Blue Jay offered eligible low-income Lifeline consumers a plan that allowed it to seek Basic 
Support reimbursements from the Fund.  In addition, Blue Jay offered eligible low-income 
consumers who lived on Hawaiian Home Lands a plan that allowed it to seek Enhanced Support 
reimbursements from the Fund.  In November 2013, Blue Jay began providing Lifeline service to 
Hawaiian consumers, including Tribal consumers residing on Hawaiian Home Lands.
8. By May 2014, Blue Jay was providing Lifeline service in Hawaii to several 
thousand consumers for whom it requested and received Enhanced Support reimbursements from 
the Fund.  On or about May 2, 2014, Blue Jay was contacted by a staff employee of the Hawaii 
Public Utilities Commission (PUC) questioning the number of subscribers self-certifying to 
residency on Hawaiian Home Lands.  The staff employee’s inquiry was about Blue Jay’s Tribal 
subscriber counts in Hawaii.  Although there is no official population figure available that 
measures eligible Lifeline subscribers residing on Hawaiian Home Lands, the staff employee 
referred to publicly available United States Census data for Hawaiian Home Lands.   
9. Blue Jay obtained self-certifications of residency on Tribal lands from each 
subscriber prior to requesting and receiving Enhanced Support reimbursements from the Fund.  
After speaking with the PUC staff employee, Blue Jay voluntarily began work on the 
development of a new process to verify subscriber self-certifications of residency on Hawaiian 
Home Lands.  In May and June 2014, Blue Jay developed a geo-mapping software tool to enable 
Blue Jay’s enrollment audit staff to view the geographic location of a Tribal applicant’s address 
                                                          
14
   See 47 CFR § 54.410(d)(3)(iii); see also Lifeline and Link Up Reform and Modernization, Lifeline and Link Up, 
Federal-State Joint Board on Universal Service, Advancing Broadband Availability Through Digital Literacy 
Training, WC Docket No. 11-42, WC Docket No. 03-109, CC Docket No. 96-45, WC Docket No. 12-23, Report and 
Order and Further notice of Proposed Rulemaking, FCC 12-11, ¶ 166 (2012) (2012 Lifeline Reform Order). 
15
  See 47 CFR § 54.405(e)(1).
16
See 47 CFR § 54.407(d).
17
See 2012 Lifeline Reform Order, 27 FCC Rcd at 6788, para. 305.  
18
See id.
Federal Communications Commission DA 16-790
5
to verify, based on street address and geographic information assembled by Blue Jay, that the 
address was located in Hawaiian Home Lands.  
10. In June 2014, Blue Jay began using the geo-mapping tool for new Hawaii 
enrollments.  After a successful test run with new enrollments, Blue Jay applied the geo-mapping 
tool to the Company’s existing base of subscribers certifying residency on Hawaiian Home 
Lands, which resulted in a large number of Tribal residence certifications that could not be 
verified through use of the geo-mapping tool.  In July 2014, Blue Jay initiated a process to 
provide thirty (30) days’ notice to these subscribers via text message to their mobile devices that 
they would need to provide proof of their residence on Hawaiian Home Lands within 30 days in 
order to rebut the presumption created by application of the geo-mapping tool and to retain the 
enhanced Lifeline benefit.  In the absence of the receipt, within 30 days, of proof to rebut the 
tool’s inability to verify the residency self-certification, Blue Jay advised subscribers that they 
would be transitioned to a standard Lifeline benefit plan.  This two-step verification process was 
completed in August 2014.  Blue Jay developed and implemented this process prior to any 
inquiries from USAC or the Bureaus.  On April 3, 2015, Blue Jay filed a revised Form 497 for 
the August 2014 data month that resulted in approximately $258,990.75 being reduced from its 
request for reimbursement from the Fund. 
11. On October 3, 2014, the Bureau issued an LOI to Blue Jay.  On October 9, 2014, 
the Wireline Competition Bureau (WCB) issued a letter to Blue Jay informing the Company of 
the Bureau’s concerns regarding the number of enhanced Lifeline subscribers enrolled in Hawaii.  
Blue Jay responded to WCB’s letter on November 7, 2014.
21
  Blue Jay provided information 
about the geo-mapping tool and notification process the Company developed to verify Hawaiian 
Home Lands residency self-certifications and the steps it took to convert to the standard Lifeline
benefit those who were unable to rebut the presumption created by application of the geo-
mapping tool.
23
12. On July 21, 2015, USAC issued a letter to Blue Jay notifying the Company of 
USAC’s determination that Blue Jay received certain amounts “in erroneous overpayments of 
USF Lifeline Program support.” Blue Jay timely filed with USAC a request for review of the 
Determination Letter with USAC on September 21, 2015.  USAC denied Blue Jay’s request on 
January 13, 2016.  Blue Jay timely filed a request for review with WCB on March 14, 2016.
19
  
Between May and August 2014, and at all other times, Blue Jay certified the accuracy of the 
number of Tribal consumers it reported to USAC and its compliance with the Lifeline Rules, 
including those subscribers who were later determined by Blue Jay to not reside on Hawaiian 
Home Lands.
13. The parties negotiated the following terms and conditions of settlement and 
hereby enter into this Consent Decree as provided below.
                                                          
19
In connection with this proceeding, USAC has held $918,010.
20
See 47 CFR § 1.93(b).
Federal Communications Commission DA 16-790
6
TERMS OF AGREEMENT
14. Adopting Order.  The provisions of this Consent Decree shall be incorporated by 
the Bureau in an Adopting Order.
15. Jurisdiction.  For purposes of this Consent Decree, Blue Jay agrees that the 
Bureau has jurisdiction over it and the matters contained in this Consent Decree and has the 
authority to enter into and adopt this Consent Decree.
16. Effective Date.  The Parties agree that this Consent Decree shall become 
effective on the Effective Date as defined herein.  As of the Effective Date, the Parties agree that 
this Consent Decree shall have the same force and effect as any other order adopted by the 
Commission.  
17. 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, Blue Jay agrees to the terms, conditions, and procedures contained herein.  The 
Bureau further agrees that, in the absence of new material evidence, it 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 Blue Jay 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 the Investigation through the Effective Date, or the existence of this 
Consent Decree, to institute, on its own motion, any proceeding, formal or informal, or to set for 
hearing the question of Blue Jay’s basic qualifications to be a Commission licensee or hold 
Commission licenses or authorizations.
20
18. Admission.   Blue Jay admits for the purpose of this Consent Decree and for the 
Commission’s civil enforcement purposes, and in express reliance on the provisions of paragraph 
17, that for the period from May 2014 through August 2014, Blue Jay certified on Form 497s 
that it obtained Tribal certifications from subscribers, including for subscribers who, after an 
inquiry by a staff employee of the Hawaii PUC, were later determined by Blue Jay to not reside 
on Hawaiian Home Lands.
19. Compliance Officer.  Within thirty (30) calendar days after the Effective Date, 
Blue Jay 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 Blue Jay 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 or her duties under 
this Consent Decree, the Compliance Officer shall have specific knowledge of the Lifeline Rules 
prior to assuming his/her duties.  Any vendor that Blue Jay uses to perform tasks associated with 
compliance with the Lifeline Rules will be subject to the Compliance Officer’s oversight.
                                                          
Federal Communications Commission DA 16-790
7
20. Compliance Plan.  For purposes of settling the matters set forth herein, Blue Jay 
agrees that it shall, within approximately ninety (90) calendar days after the Effective Date, 
develop and implement a Compliance Plan designed to ensure future compliance with the 
Lifeline Rules and with the terms and conditions of this Consent Decree.  With respect to the 
Lifeline Rules, Blue Jay will implement, at a minimum, the following procedures:
(a) Operating Procedures.  Within ninety (90) calendar days after the Effective 
Date, Blue Jay shall establish Operating Procedures that all Covered 
Employees and Covered Third Party Employees must follow to help ensure 
Blue Jay’s compliance with the Lifeline Rules.  Blue Jay’s Operating 
Procedures shall include internal procedures and policies specifically 
designed to ensure that enrollment and de-enrollment of Tribal consumers 
shall comply with Lifeline Rules.  Blue Jay shall also develop a Compliance 
Checklist that describes the steps a Covered Employee and Covered Third 
Party Employee must follow to ensure compliance with the Lifeline 
eligibility rules for Tribal consumers.  The Operating Procedures 
implemented by Blue Jay shall also include, at a minimum, the following 
items.
i. At the request of the WCB, Blue Jay shall demonstrate to USAC’s 
satisfaction the effectiveness and accuracy of any software program it 
uses or has used to identify and verify Lifeline consumers’ residency 
on Tribal lands.  Blue Jay shall update any software verification tool it 
uses as necessary to ensure compliance with the Lifeline Rules. If at 
any time USAC is not satisfied with the software verification tool, 
Blue Jay shall cease using it or modify it so that USAC is satisfied 
with it; and 
ii. Unless USAC is not satisfied by the effectiveness and accuracy of any 
software program Blue Jay uses to identify and verify Tribal 
consumers, Blue Jay shall continue the use of the software program in 
determining the eligibility of all prospective Tribal consumers who 
apply to receive Lifeline service and current Tribal consumers who 
notify Blue Jay of a change in their residential address during the 
duration of the Compliance Plan, as provided in paragraph 23 herein.
(b) Compliance Manual.  Within ninety (90) calendar days after the Effective 
Date, the Compliance Officer shall develop and distribute a Compliance 
Manual to all Covered Employees and Covered Third Parties.  The 
Compliance Manual shall explain the Lifeline Rules and set forth the 
Operating Procedures that Covered Employees and Covered Third Party 
Employees shall follow to help ensure Blue Jay’s compliance with the 
Lifeline Rules.  Blue Jay shall periodically review and revise the Compliance 
Manual as necessary to ensure that the information set forth therein remains 
current and accurate.  Blue Jay shall distribute any revisions to the 
Compliance Manual promptly to all Covered Employees and Covered Third 
Party Employees.
Federal Communications Commission DA 16-790
8
(c) Compliance Training Program.  Blue Jay shall establish and implement a 
Compliance Training Program on compliance with the Lifeline Rules, 
including eligibility and self-certification requirements for low-income 
Lifeline consumers residing on Tribal lands, and the Operating Procedures. 
As part of the Compliance Training Program, Covered Employees shall be 
advised of Blue Jay’s obligation to report any noncompliance with the 
Lifeline Rules under paragraph 21 of this Consent Decree and shall be 
instructed on how to disclose noncompliance to the Compliance Officer.  All 
Covered Employees and Covered Third Party Employees shall be trained 
pursuant to the Compliance Training Program within ninety (90) calendar 
days after the Effective Date, except that any person who becomes a Covered 
Employee or Covered Third Party Employee at any time after the initial 
Compliance Training Program shall be trained within fourteen (14) calendar 
days after the date such person becomes a Covered Employee or Covered 
Third Party Employee.  Blue Jay shall repeat 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.
21. Reporting Noncompliance.  Blue Jay 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 Blue Jay 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 the Blue Jay has taken or will take to prevent the recurrence of any 
such noncompliance.  All reports of noncompliance shall be submitted to Director, Universal 
Service Fund Strike Force, Enforcement Bureau, Federal Communications Commission, 445 12
th
Street, S.W., Washington, D.C. 20554, with a copy submitted electronically to 
Loyaan.Egal@fcc.gov; Rakesh.Patel@fcc.gov; and Dangkhoa.Nguyen@fcc.gov. 
22. Compliance Reports.  Blue Jay shall file compliance reports with the 
Commission one-hundred and twenty (120) 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 Blue Jay’s 
efforts during the relevant period to comply with the terms and conditions of 
this Consent Decree.  In addition, each Compliance Report shall include a 
certification by the Compliance Officer, as an agent of and on behalf of Blue 
Jay, stating that the Compliance Officer has personal knowledge that Blue 
Jay:  (1) has established and implemented the Compliance Plan; (2) has 
utilized the Operating Procedures since the implementation of the Compliance 
Plan; and (3) 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 21 of this Consent Decree.
Federal Communications Commission DA 16-790
9
(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 therein.
21
(c) If the Compliance Officer cannot provide the requisite certification, the 
Compliance Officer, as an agent of and on behalf of Blue Jay, shall provide 
the Commission with a detailed explanation of the reason(s) why and describe 
fully:  (1) each instance of noncompliance; (2) the steps that Blue Jay has 
taken or will take to remedy such noncompliance, including the schedule on 
which proposed remedial actions will be taken; and (3) the steps that Blue Jay 
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 Director, Universal Service 
Fund Strike Force, Enforcement Bureau, Federal Communications 
Commission, 445 12
th
Street, S.W., Washington, D.C. 20554, with a copy 
submitted electronically to Loyaan.Egal@fcc.gov; Rakesh.Patel@fcc.gov; and 
Dangkhoa.Nguyen@fcc.gov.
23. Termination Date. The requirements set forth in paragraphs 19 through 22 of 
this Consent Decree shall expire thirty-six (36) months after the Effective Date.  
24. 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
22
against Blue Jay 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 
Blue Jay with the Communications Laws.
25. Universal Service Fund Repayment.  In addition to the $258,990.75 Blue Jay 
has already repaid to the Fund,
23
Blue Jay agrees to settle this matter for a further repayment to 
the Universal Service Fund in the amount of $1,743,010.  The further repayment will be 
structured as follows: 
(a) Blue Jay will repay $825,000 to the Universal Service Fund in 
installments of $75,000 per month beginning with the requests covering 
services provided in August 2016 and continuing for 11 months;
                                                          
21
47 CFR § 1.16
22
47 U.S.C. § 208.
23
This correction and payment was made by Blue Jay on April 3, 2015.
Federal Communications Commission DA 16-790
10
(b) Blue Jay will withdraw and not pursue its pending appeal presently before 
WCB related to claims involving $918,010 in Lifeline reimbursements.
26. Waivers.  As of the Effective Date, Blue Jay 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.  Blue Jay 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 Consent Decree or the Adopting Order, neither Blue 
Jay nor the Commission shall contest the validity of the Consent Decree or the Adopting Order, 
and Blue Jay shall waive any statutory right to a trial de novo.  Blue Jay hereby agrees to waive 
any claims it may otherwise have under the Equal Access to Justice Act
24
relating to the matters 
addressed in this Consent Decree.
27. Severability.  The Parties agree that if any of the provisions of the Consent 
Decree shall be held unenforceable by any court of competent jurisdiction, such unenforceability 
shall not render unenforceable the entire Consent Decree, but rather the entire Consent Decree 
shall be construed as if not containing the particular unenforceable provision or provisions, and 
the rights and obligations of the Parties shall be construed and enforced accordingly.
28. 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.
29. 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 Blue Jay does 
not expressly consent) that provision will be superseded by such Rule or Order.
30. Successors and Assigns.  Blue Jay agrees that the provisions of this Consent 
Decree shall be binding on its successors, assigns, and transferees.
31. Final Settlement.  In furtherance of settlement, and subject to the other terms of 
this Consent Decree, the Parties agree as follows: 
(a) The Parties agree and acknowledge that this Consent Decree shall 
constitute a final settlement between the Parties with respect to the 
Investigation;
(b) Blue Jay agrees to withdraw and not to pursue its pending appeal presently 
before WCB related to claims involving $918,010 in Lifeline 
reimbursements including, but not limited to, its March 14, 2016 Request 
of Blue Jay Wireless for Review of January 13, 2016 Decision of the 
Universal Service Administrative Company; and 
                                                          
24
See 5 U.S.C. § 504; 47 CFR §§ 1.1501–1.1530.
Federal Communications Commission DA 16-790
11
(c) Blue Jay agrees not to initiate any additional actions or proceedings, 
including before any court or tribunal, seeking payments for Lifeline 
services provided in Hawaii that are the subject of the Investigation.  
32. Modifications.  This Consent Decree cannot be modified without the advance 
written consent of both Parties.
33. 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.
34. Authorized Representative.  Each Party represents and warrants to the other that 
it has full power and authority to enter into this Consent Decree.  Each person signing this 
Consent Decree on behalf of a Party hereby represents that he or she is fully authorized by the 
Party to execute this Consent Decree and to bind the Party to its terms and conditions.
35. Counterparts.  This Consent Decree may be signed in counterpart (including 
electronically or by facsimile).  Each counterpart, when executed and delivered, shall be an 
original, and all of the counterparts together shall constitute one and the same fully executed 
instrument.
________________________________
Travis LeBlanc, Chief
Enforcement Bureau
________________________________
Date
________________________________
David Wareikis
Chief Executive Officer
Blue Jay Wireless, LLC
________________________________
Date