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                         Federal Communications Commission           FCC 18-116 

                                   Before the 
                         Federal Communications Commission 
                              Washington, D.C.  20554 
  
  
 In the Matter of                       )     
                                        )     
 AT&T Corp.,                            )     
                                        )     
      Complainant,                      )     
                                        )     
 v.                                     )    Proceeding Number 17-56 
                                        )    Bureau ID Number EB-17-MD-001 
 Iowa Network Services, Inc. d/b/a      ) 
 Aureon Network Services,               ) 
                                        ) 
      Defendant.                        ) 
  
 
                         ORDER ON RECONSIDERATION 
 
Adopted:  August 1, 2018                                   Released:  August 1, 2018 
 
By the Commission: 
 
  
I.    INTRODUCTION  
      1.    On June 8, 2017, AT&T Corp. (AT&T) filed a formal complaint against Iowa Network 
Services, Inc. d/b/a Aureon Network Services (Aureon) under Section 208 of the Communications Act of 
1934, as amended (Act).1  Five months later, the Commission issued a Liability Order that partially 
granted AT&T s Complaint.2  Aureon subsequently filed a Petition for Reconsideration of the Liability 
Order.3  For the reasons explained below, we grant the Petition in part and otherwise deny it.     
 II.   BACKGROUND4 
       2.    As authorized by the Commission, Aureon provides Centralized Equal Access (CEA) 
 service in Iowa.5  With respect to AT&T an interexchange carrier (IXC) Aureon furnishes terminating 
interstate access services under a federal tariff that Aureon files with the Commission.6  Beginning in 
                                                      
 1 Formal Complaint of AT&T Corp., Proceeding Number 17-56, Bureau ID Number EB-17-MD-001 (filed June 8, 
2017) (Complaint).   
 2 AT&T Corp. v. Iowa Network Services, Inc. d/b/a Aureon Network Services, Memorandum Opinion and Order, 32 
FCC Rcd 9677 (Nov. 8, 2017) (Liability Order). 
 3 See Petition for Reconsideration, Proceeding Number 17-56, Bureau ID Number EB-17-MD-001 (filed Dec. 8, 
2017) (Petition); 47 CFR  1.106.   
 4 This is an abridged description of the factual and legal background.  The Liability Order contains a more complete 
 discussion, which we incorporate by reference.  See Liability Order, 32 FCC Rcd at 9677-9684, paras. 2 16. 
 5 Liability Order, 32 FCC Rcd at 9678-79, paras. 4-6.  See In re Applications of Iowa Network Access Div., 
 Memorandum Opinion, Order and Certificate, 3 FCC Rcd 1468 (1988), para. 3. 
 6 Liability Order, 32 FCC Rcd at 9678, 9679, 9681-82, paras. 3, 6, 11.  See, e.g., Complaint, Exh. 3, INAD Tariff 
F.C.C. No. 1 (filed Aug. 10, 1988). 

  
                         Federal Communications Commission           FCC 18-116 
  

September 2013 and continuing through the present, AT&T has refused to pay the majority of Aureon s 
charges.7   
      3.    On May 30, 2014, Aureon sued AT&T in the United States District Court for New 
Jersey, alleging that AT&T breached Aureon s federal and state tariffs.8  In response, AT&T filed 
counterclaims against Aureon for various violations of the Act.9  The District Court stayed the case on 
 October 14, 2015, and referred certain issues to the Commission under the primary jurisdiction doctrine.10   
      4.    To effectuate the Court s referral, on June 8, 2017, AT&T filed its Complaint with the 
Commission.11  Counts I and II asserted that Aureon violated Sections 201 and 203 of the Act, 
respectively.12  Specifically, AT&T argued that (1) Aureon s tariff applies only to CEA service, which 
does not include access stimulation traffic; (2) Aureon violated the Commission s rate cap and rate parity 
rules by raising its CEA tariffed rate in 2013 and by not lowering its intrastate CEA rate; (3) Aureon is 
engaged in access stimulation but has not filed revised tariffs as the Commission requires; and (4) Aureon 
has manipulated its CEA rates through a variety of improper accounting measures.13   
       5.    The Commission rejected AT&T s assertions that Aureon is itself engaged in access 
 stimulation and that Aureon s tariff does not cover traffic bound for other carriers that are engaged in 
 access stimulation.14  The Liability Order further determined, however, that Aureon failed to comply with 
 the Commission s rate cap and rate parity rules when it raised its CEA rate in 2013.15  Finally, the 
Commission declined to address AT&T s rate manipulation claim, reserving that issue for the damages 
proceeding.16  
 III.  DISCUSSION 
       A.   The Liability Order Properly Applied an Existing Rule Against Aureon. 
      6.    Aureon argues that the Commission failed to provide fair notice that it would apply its 
rate cap and rate parity rules to Aureon and  classify Aureon as a CLEC  under those rules.17  As a result, 
Aureon contends that any relief must be prospective only.  We disagree.  The plain text of the 
Commission s rules and orders in existence at the time Aureon filed its tariff provided Aureon ample 
notice of its regulatory status and obligations.18   


                                                      
 7 Liability Order, 32 FCC Rcd at 9683, para. 14.  Between September 2013 and March 2017, Aureon billed AT&T 
         .  AT&T has paid    , less than a quarter of the billed amount.  See Complaint, Exh. 80, AT&T 
 Billing Summary.   
 8 Liability Order, 32 FCC Rcd at 9683, para. 15. 
 9 Id. 
 10 Id. 
 11 Id. at 9684, para. 16. 
 12 Id. 
 13 Id. 
 14 Id. at 9684-88, 9692-94, paras. 17-22, 31-34. 
 15 Id. at 9688-92, paras. 23-29. 
 16 Id. at 9692, para. 30. 
 17 See Petition at 8-14. 
 18 See Gen. Elec. Co. v. EPA, 53 F.3d 1324, 1329 (D.C. Cir. 1995). 

                                       2 
                               Federal Communications Commission                      FCC 18-116 
 

        7.     The Liability Order enforced rate cap and rate parity rules and policies that the 
Commission adopted in 2011, well before Aureon s 2013 tariff filing.19   
        8.      As the Liability Order explained and as Aureon itself conceded Aureon is a local 
exchange carrier (LEC) providing switched access service.20  In 2011, the USF/ICC Transformation 
Order stated unequivocally and without exception that,  at the outset of the transition, all interstate 
switched access and reciprocal compensation rates will be capped at rates in effect as of the effective date 
of the rules. 21  Thus, there should have been no question that Aureon is subject to the Commission s 
transition rules,22 including the rate cap and rate parity rules.23  Moreover, the Liability Order further 
described why Aureon necessarily is a competitive local exchange carrier (CLEC) for purposes of 
the transition rules.24  Those rules define a CLEC as  any local exchange carrier  that is not an incumbent 
 local exchange carrier (ILEC); Aureon is not an ILEC, nor does it claim to be one.25   
        9.      Furthermore, retroactivity is the  norm in agency adjudications no less than in judicial 
adjudications. 26  In general,  retroactive effect is appropriate for new applications of existing law, 
 clarifications, and additions. 27  Unless Aureon can point to a  settled rule on which it reasonably relied  
and that the Commission changed, 28 the Liability Order is properly presumed retroactive.29  The Petition 
makes no such showing. 
        10.    Aureon s fair notice claim fails because Aureon  does not and indeed cannot point . . . to 
a settled rule on which it reasonably relied  in maintaining that it was not subject to the rate cap and rate 

                                                      
 19 Liability Order, 32 FCC Rcd at 9689-92, paras. 23-28. 
 20 See id., 32 FCC Rcd at 9689, para. 25; Answer at 53, para. 94.   
 21 Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663, 
 17934 at para. 801 (2011) (USF/ICC Transformation Order), pets. for review denied, In re FCC 11-161, 753 F.3d 
1015 (10th Cir. 2014) (emphasis added).   
 22 47 CFR  51.901-51.919. 
 23 See Liability Order, 32 FCC Rcd at 9689-90, para. 25.  The Commission s regulations are similarly broad and 
 unambiguous.  Section 51.901(b) of the Commission s rules, which is entitled  Purpose and scope of transitional 
 access service pricing rules,  states that the Commission s transition rules  apply to reciprocal compensation for 
 telecommunications traffic exchanged between telecommunications providers that is interstate or intrastate 
 exchange access, information access, or exchange services for such access, other than special access.   47 CFR  
 51.901(b) (emphasis added).  This provision describes the scope of the transition rules in Subpart J and notified 
 Aureon, as well as other CEA providers, that they are subject to them.  Indeed, at least one other CEA provider 
 correctly concluded that it was subject to the rate caps.  See Liability Order, 32 FCC Rcd at 9692, para. 28. 
 24 Liability Order, 32 FCC Rcd at 9689-90, para. 25. 
 25 Id. (emphasis added); 47 CFR  51.903(a).  Aureon does not satisfy the definition of an ILEC, because it neither 
provided  telephone exchange service  on February 8, 1996, nor was it a member of NECA on February 8, 1996 (or 
 a successor to a member).  In fact, Aureon admitted that, although it is a LEC, it is not a  Price Cap LEC  or a  Rate 
 of Return Carrier  under Subpart J.  See Complaint at 12, para. 26; Iowa Network Services, Inc. d/b/a Aureon 
 Network Services Answer to the Formal Complaint of AT&T Corp, Proceeding Number 17-56, Bureau ID Number 
 EB-17-MD-001 (filed June 28, 2017) (Answer) at 16, para. 26; Answer, Exh. B, Declaration of Frank Hilton at 9, 
para. 17-18; Answer, Proposed Findings of Facts at 113, paras. 37-38. 
 26 AT&T v. FCC, 454 F.3d 329, 332 (D.C. Cir. 2006). 
 27 Verizon v. FCC, 269 F.3d 1098, 1109 (D.C. Cir. 2001). 
 28 AT&T v. FCC, 454 F.3d at 332. 
 29 Qwest Servs. Corp. v. FCC, 509 F.3d 531, 540 (D.C. Cir. 2007) ( Clarifying the law and applying that 
 clarification to past behavior are routine functions of adjudication. ). 

                                                 3 
                               Federal Communications Commission                      FCC 18-116 
 

parity rules.30  Stated differently, nothing in the past precedent Aureon identifies made it  reasonably 
clear  that Aureon was exempt from those rules.31  Specifically, although Aureon cites to certain 
 Commission statements in the 2001 Seventh Report and Order,32 they have no bearing on the issue of 
 whether Aureon received fair notice from the 2011 USF/ICC Transformation Order that it was subject to 
 the Commission s transitional access rules.33  Moreover, although Aureon correctly notes that the 
Commission has held it to be a dominant carrier,34 that in no way precludes a finding that Aureon also is 
 subject to the Commission s rate cap and rate parity rules.  Aureon s dominant carrier status does not 
 excuse it from complying with the additional duties imposed by more general regulations governing 
 LECs providing switched access service.35   
        B.      Because Aureon Filed Its 2013 Tariff in Violation of the Rate Caps the Commission 
               Established Through Its Ratemaking Authority, the Tariff Is Void Ab Initio.   
        11.    Aureon does not seek reconsideration of the Liability Order s finding that the 2013 tariff 
rates exceeded their 2011 levels, in violation of the Commission s rate cap and rate parity rules.  
Nevertheless, Aureon takes issue with the Commission s decision that the 2013 tariff was, as a result, 
void ab initio and thus not  deemed lawful.   According to Aureon, the Liability Order is inconsistent 
with precedent and renders Section 204(a)(3) of the Act  impotent and meaningless. 36  That is incorrect. 


                                                      
 30 AT&T v. FCC, 454 F.3d at 332.   
 31 Petition at 5-20 (citations omitted); see Verizon v. FCC, 269 F.3d at 1109. 
 32 See Petition at 9-10 (citing Access Charge Reform, Reform of Access Charges Imposed by Competitive Local 
Exchange Carriers, Seventh Report and Order and Further Notice of Proposed Rulemaking, 16 FCC Rcd 9923 
(2001) (Seventh Report and Order). 
 33 Compare Seventh Report and Order, 16 FCC Rcd at 9936-49, with USF/ICC Transformation Order, 26 FCC Rcd 
at 17932-38.  Aureon claims that, based upon comments made by a Commission staff member during an April 2017 
ex parte meeting, it believed it was no type of LEC (i.e., neither an ILEC nor a CLEC) and that  non-dominant 
CLEC regulations  did not apply to it.  Petition at 12-13.  Even assuming that Aureon correctly understood the staff 
member s statements, informal staff guidance does not bind the Commission.  See, e.g., Petition for Waiver of 
Section 61.45(d), Memorandum Opinion and Order, 21 FCC Rcd 14293, 14299, para. 15 (2006) (finding informal 
staff letters non-binding on the Commission); C.F. Communications Corp. v. Century Telephone of Wisconsin, Inc.. 
Memorandum Opinion and Order on Remand, 15 FCC Rcd 8759, 8768-8769, para. 28 (2000) (finding unpublished 
letter rulings non-binding on the Commission when no party had actual knowledge of the letters); Kojo Worldwide 
Corp. San Diego, California, Memorandum Opinion and Order, 24 FCC Rcd 14890, 14894, para. 8 (2009) 
(rejecting argument that staff had promised nonenforcement of provisions of the Act); Applications of Hinton Tel. 
Co., Memorandum Opinion and Order on Reconsideration, 10 FCC Rcd 11625, 11637, para. 42 (1995) (noting that 
when staff advice is contrary to the Commission's rules, the Commission may enforce its rules despite reliance by 
the public). 
 34 Petition at 10, 13.   
 35 See Liability Order, 32 FCC Rcd at 9690, para. 26 (although a dominant carrier,  like all LECs, Aureon is 
 subject to additional obligations  such as the rate cap and rate parity rules).  Contrary to Aureon s contention, its 
regulatory status under the Commission s 2011 transition rules and its tariff filing obligations under Part 61 of the 
Commission s rules are two different things.  Aureon is a CLEC with regard to the transitional access service 
pricing rules (see Liability Order, 32 FCC Rcd at 9689-90, para. 25), which means that Aureon must cap its rates 
based on the appropriate benchmark rate of the competing ILEC.  47 CFR  51.911.  At the same time, Aureon also 
is a dominant carrier and remains subject to the rules for dominant carriers, including Section 61.38.  Liability Order, 
32 FCC Rcd at 9690, para. 26.  Thus, Aureon s rates under Section 61.38 control, if they are lower under cost-of-
service rate making principles. 
 36 Petition at 22. 

                                                 4 
                         Federal Communications Commission           FCC 18-116 
 

      12.   Section 204(a)(3) provides that a LEC  may file with the Commission a new or revised 
 charge &  on a streamlined basis  and that  any such charge . . . shall be deemed lawful. 37  The provision 
 limits a customer s right to assert in a complaint proceeding that a carrier s filed rate is unreasonably 
 high.38  It does nothing, however, to restrict the Commission s authority to fix rates or rate limits for the 
 future, and those rates necessarily place per se limits on carriers  filed rates.39 
       13.   In this case, the Commission set maximum rate caps in a notice-and-comment 
 rulemaking.40  In doing so, the Commission acted in its ratemaking capacity; consequently, the rate caps 
took the place of the legal tariff rates that carriers had previously set.  The rate caps represent the 
 Commission s judgment that higher rates would be per se unreasonable and would encourage arbitrage.41  
 Once the Commission issued the rate caps,  its pronouncement has the force of a statute,  and carriers 
 were bound to conform. 42  Moreover, the courts have found that the Commission cannot  in a 
 subsequent proceeding, acting in its quasi-judicial capacity, ignore its own pronouncement promulgated 
 in its quasi-legislative capacity and retroactively repeal its own enactment as to the reasonableness of the 
 rate it has prescribed. 43  Thus, once the Commission determined in 2011 that Aureon and every other 
carrier providing interstate switched access was subject to the rate caps, the Commission was obligated 
to enforce them in complaint proceedings like this one.  The cases Aureon cites applying Section 
 204(a)(3) and the  deemed lawful  doctrine are inapposite.44  They involved complaints challenging rates 
 that neither customers nor the Commission could determine were unlawful at the time the tariff was filed 
 but that ultimately resulted in rate-of-return violations.45  In contrast, the rates in this case clearly 
 exceeded the established rate cap at the time Aureon filed its tariff. 
       14.   We find that nothing in the language of Section 204(a)(3) suggests that a rate that was 
 prohibited by the Commission s rules could be one that a carrier  may  file under Section 204(a)(3).  To 
 the extent that Aureon believes that Section 204(a)(3) permits it to file any rate on a streamlined basis, 
 including an unlawful one, we disagree.  We find that the  reading of Section 204(a)(3) that Aureon 
 advances would transform the statutory  deemed lawful  protection for streamlined filings into a safe 

                                                      
 37 47 U.S.C.  204(a)(3).  The statute provides for certain waiting periods  7 days for a reduction in rates and 15 
days for an increase in rates  before such a rate filed on a streamlined basis shall be effective.  See id. 
 38 Such a right first arose under the common law and was carried forward in Section 201(b) of the Act.  See Ariz. 
Grocery v. Atchison, T. & S.F. Ry. Co., 284 U.S. 370, 383-85 (1932) (Arizona Grocery). 
 39 Arizona Grocery, 284 U.S. at 387 ( Specific rates prescribed for the future take the place of the legal tariff rates 
theretofore in force by the voluntary action of the carriers, and themselves become the legal rate. ). 
 40 See USF/ICC Transformation Order, 26 FCC Rcd at 17934, para. 801. 
 41  Id., 26 FCC Rcd at 17933-34,  paras. 800-01, n.1494, 17937-38, para. 808.   
 42 Arizona Grocery, 284 U.S. at 386-87. 
 43 Id. at 389.  Unlike Congress, administrative agencies do not enact legislation, but courts at times have used the 
term  quasi-legislative  to refer to an agency s power to establish standards (such as rates) that have future effect 
and general applicability usually through notice-and-comment rulemaking.  See, e.g., Black s Law Dictionary 
1040 (10th ed. 2014) (defining  quasi-legislative power  as  [a]n administrative agency s power to engage in 
rulemaking ); Verizon v. FCC, 269 F.3d at 1108 ( there is an important distinction between rules resulting from 
quasi-adjudication and rules resulting from quasi-legislation ); Ariz. Grocery, 284 U.S. at 388-89 ( the system now 
administered by the Commission is dual in nature.  As respects a rate made by the carrier, its adjudication finds the 
facts, and may involve a liability to pay reparation;  the Commission has also been delegated  undoubted power  to 
set rates for the future). 
 44 See Petition at 20-22 (citing Virgin Islands Tel . Corp. v FCC, 444 F.3d 666 (D.C. Cir. 2006) (V.I. Tel. v. FCC), 
ACS of Anchorage, 290 F.3d 403 (D.C. Cir. 2002) (ACS of Anchorage v FCC). 
 45 See ACS of Anchorage v. FCC, 290 F.3d at 413 ( it is virtually impossible to tell in advance just what rate of 
return a given rate may yield ). 

                                       5 
                         Federal Communications Commission           FCC 18-116 
 

haven for carriers that file tariffs clearly containing unlawful rates.  Such an outcome would allow carriers 
to exploit the Commission s practical inability to review and, if necessary, suspend within 15 days, each 
of the well over 6,000 tariff filings it receives annually.  We disagree that this is what Congress intended 
when it established a streamlined review process to speed the implementation of new or revised tariff 
filings.46 
       15.   We note that the D.C. Circuit has construed the term  deemed lawful  in Section 
204(a)(3) in a manner that supports our interpretation.  In Virgin Islands Telephone Corporation v. FCC, 
the court described a lawful tariff as one that  is not only legal, but also contains rates that are  just and 
reasonable  within the meaning of  201(b). 47  The court also described a  legal  tariff as one that 
 contains the published rates the carrier is permitted to charge. 48  The court went on to describe  two 
ways for a merely legal tariff to become substantively lawful,  one of which includes being  deemed 
lawful  under Section 204(a)(3).49  A filing that contains rates that the carrier is not permitted to charge 
 does not even meet the preliminary standard for a legal tariff filing, and therefore cannot become a 
  deemed lawful  tariff by operation of Section 204(a)(3).  A contrary reading would have the effect of 
 immunizing from later attack rates that directly violate Commission rules prohibiting specific rate levels 
 at the time of filing.  Nothing in the statute indicates that Congress intended such a result.       
       C.   We Clarify That Aureon s 2012 Tariff Remains in Effect Unless and Until AT&T 
            Establishes in the Damages Phase That Aureon Furtively Employed Improper 
            Accounting Practices to Conceal Potential Rate of Return Violations. 
      16.   Notwithstanding the above findings, we grant Aureon s Petition in one respect.  The 
 Liability Order stated that the Commission will determine in the damages phase of this proceeding what 
 Aureon s rates should have been as of June 13, 2013.50  Aureon asks that, if the Commission upholds its 
  deemed lawful  and void ab initio findings, it confirm that the rates in Aureon s 2012 tariff apply.51  We 
do so now, subject to the caveat that AT&T will have the opportunity in the damages phase to 
demonstrate that, in connection with the 2012 tariff, Aureon furtively employed improper accounting 
 practices to conceal potential rate of return violations.52  
      17.     As discussed above, Aureon s 2013 tariff is void ab initio and therefore never went into 
 effect.53  Because the 2013 tariff did not cancel or supersede Aureon s 2012 tariff, the 2012 tariff retained 
 its legal status.54  Aureon s 2012 tariff rate was $0.00623 per minute, which is less than the 2011 capped 
                                                      
 46 See Streamlined Tariff Order, 12 FCC Rcd at 2172, n.2 (quoting Sen. Robert Dole, sponsor of the streamlined 
tariffing amendments to the Communications Act, as saying the provisions would  [s]peed up FCC action for phone 
companies ). 
 47 V.I. Tel. v. FCC, 444 F.3d at 669. 
 48 Id. 
 49 Id.; see also ACS of Anchorage v. FCC, 290 F.3d at 413 (noting in a section of the opinion construing the 
 deemed lawful  provision that it was not addressing a situation involving  misconduct ); Tariff Streamlining 
Order, 12 FCC Rcd at 2175-84, paras. 7-24 (discussing whether a rate is conclusively presumed to be  reasonable  
under Section 204(a)(3)  which the Commission might find the rate to be after hearing (204(a)(1)), complaint 
(208), or investigation (205)  but not whether the rate was prohibited by Commission order at the time of filing).  
 50 Liability Order, 32 FCC Rcd at 9677, 9692, paras. 1, 30. 
 51 Petition at 3-5. 
 52 This clarification renders moot Aureon s argument that the appropriate benchmark rate is the NECA rate.  See 
Petition at 22-25.   
 53  Void ab initio  means  [n]ull from the beginning.   Black s Law Dictionary 1085 (10th ed. 2014). 
 54 See, e.g., V.I. Tel. v. FCC, 444 F.3d at 671-72 (finding that an order vacating the suspension of a streamlined filed 
 tariff restored the status quo ante status of it as a deemed lawful tariff). 

                                       6 
                               Federal Communications Commission                      FCC 18-116 
 

rate of $0.00819 per minute.55  The FCC did not suspend the tariff.  Nor did AT&T or any other carrier 
 challenge Aureon s 2012 tariff filing; accordingly, it was  deemed lawful.    
        18.    We are unpersuaded by AT&T s arguments that the 2012 tariff cannot be the  currently 
 effective tariff rate. 56  To begin, AT&T contends that, as a dominant carrier, Aureon must refile its rates 
periodically to insure that they properly reflect Aureon s costs of service.57  AT&T claims that Aureon 
 violated Rule 69.3 now that the Commission has determined the 2013 tariff to be void (i.e., no tariff was 
 on file).58  But, AT&T offers no support for its contention that a failure to comply with Rule 69.3 vitiates 
an operative tariff.  Indeed, Aureon s 2012 tariff did not expire by its own terms and it remains in effect 
 until it is amended or cancelled.  Next, AT&T argues that Aureon s 2012 tariff rate  might not be 
accurate  because of accounting discrepancies relating to  uncollectible revenues  and lease rates.59  This 
 narrow exception to the  deemed lawful  provision in Section 204(a)(3) of the Act may be triggered when 
 a carrier  furtively employs improper accounting techniques  that  conceal[] potential rate of return 
 violations. 60  The Liability Order reserved resolution of this aspect of AT&T s Complaint for the 
damages phase of the case, and AT&T will have the opportunity to present evidence on this claim then.61  
 Unless and until AT&T is able to demonstrate that Aureon s 2012 tariff rate should not be  deemed 
 lawful,  the 2012 tariff rate governs for the relevant period.    


                                                      
 55 Liability Order, 32 FCC Rcd at 9682, para. 11. 
 56 See Opposition of AT&T Corp. to Aureon s Petition for Reconsideration, Proceeding Number 17-56, Bureau ID 
 Number EB-17-MD-001 (filed Dec. 18, 2017) at 7-8 (AT&T Opposition).  In accordance with the Liability Order, 
Aureon filed a revised interstate tariff with rates that complied with the terms of the Order.  Aureon did so on 
February 22, 2018, and the Commission suspended the tariff for one day and launched an investigation.  See In the 
Matter of Iowa Network Access Division Tariff F.C.C. No. 1, WC Docket No. 18-60, Transmittal No. 36, Order, DA 
18-199 (WCB/Pricing Feb. 28, 2018).  Accordingly, our determination here pertains only to Aureon s rate from June 
13, 2013, to February 22, 2018. 
 57 AT&T Opposition at 7 (citing 47 CFR  69.3(a), (f)(1) ( [a] tariff for access service provided by a telephone 
company that is required to file an access tariff pursuant to  61.38 of this Chapter shall be filed for a biennial 
period )). 
 58 AT&T Opposition at 7.  AT&T also argues that Aureon s 2012 tariff rate cannot be the effective rate because it 
 does not accurately reflect Aureon s cost of service.  Id. at 8.  As discussed below, the Commission will address in 
 the damages phase of this case alleged improprieties in Aureon s 2012 tariff rate.  Specifically, the Commission will 
 examine whether Aureon engaged in any improper conduct that would satisfy the high legal threshold necessary to 
 negate the  deemed lawful  status of its 2012 tariff. 
 59 AT&T Opposition at 8; see Complaint at 57-64, paras. 118-33; Complaint, Legal Analysis at 48-63; see also 
Liability Order at para. 30. 
 60 ACS of Anchorage v FCC, 290 F.3d at  411-13 ( We do not, of course, address the case of a carrier that furtively 
employs improper accounting techniques in a tariff filing, thereby concealing potential rate of return violations.  The 
Order here makes no claim of such misconduct. ).  This language was dicta, and the Commission has never awarded 
refunds on this basis. 
 61 See Liability Order, 32 FCC Rcd at 9692, para. 30. 

                                                 7 
                         Federal Communications Commission           FCC 18-116 
 

IV.   ORDERING CLAUSES    
      19.   Accordingly, IT IS HEREBY ORDERED, pursuant to Sections 1, 4(i), 4(j), 201, 203, 
208, and 405 of the Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 154(j), 201, 
203, 208, 405, and Section 1.106 of the Commission s Rules, 47 CFR  1.106, that Aureon s Petition for 
Reconsideration is GRANTED IN PART, and otherwise DENIED as described herein.     
                                     FEDERAL COMMUNICATIONS COMMISSION 
  
  
  
  
                                     Marlene H. Dortch 
                                     Secretary  


                                       8