**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | *  | File No. EB-04-IH-0274       |
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| Carrera Communications, LP       | ** | NAL/Acct. No. 200532080137   |
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| Apparent Liability for           | *  | FRN No. 0010-7507-43         |
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**NOTICE OF APPARENT LIABILITY**

**FOR FORFEITURE AND ORDER**

**Adopted: July 25, 2005 Released: July 25, 2005**

By the Commission:

# 

# I. INTRODUCTION 

1.  In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
    that a telecommunications provider, operating since 1999 and at
    least indirectly benefiting from the federal programs supporting the
    telecommunications industry since that time, apparently failed to
    meet its statutory and regulatory obligations relating to those
    programs. Despite multiple Commission inquiries into its compliance
    with our rules and the Communications Act of 1934, as amended (the
    "Act"),[^1] and with the exception of a few isolated acts of
    post-investigative compliance, this carrier continues a pattern of
    egregious non-compliance. Based upon the facts and circumstances
    surrounding this matter we conclude that this company is apparently
    liable for a total forfeiture of \$606,500.

2.  We specifically find that Carrera Communications, LP ("Carrera") has
    apparently violated sections 54.711(a) and 64.604 of the
    Commission's rules by failing to submit certain Telecommunications
    Reporting Worksheets ("Worksheets") or predecessor forms from 1999
    through the current date.[^2] Further, we find that Carrera has
    apparently violated section 254(d) of the Act and sections 54.706(a)
    and 64.604(c)(5)(iii)(A) of the Commission's rules by willfully and
    repeatedly failing to contribute to the Universal Service Fund
    ("USF") and Telecommunications Relay Service ("TRS") Fund.[^3] We
    also find that Carrera has apparently violated sections 1.1154 and
    1.1157(b)(1) of the Commission's rules by failing to pay regulatory
    fees to the Commission.[^4] Finally, we find that Carrera apparently
    violated Commission orders by willfully and repeatedly failing to
    respond to Commission directives to provide certain information.

3.  We order Carrera to submit within thirty days, either as part of its
    response to this NAL or separately, a report, supported by a sworn
    statement or declaration under penalty of perjury of a corporate
    officer, setting forth in detail its plan to come into compliance
    with the relevant payment and reporting rules discussed herein. We
    further order Carrera to file with the Universal Service
    Administrative Company ("USAC") within thirty days all annual
    Telecommunications Reporting Worksheets and amended Worksheets
    required under the Commission's rules from the date that Carrera
    commenced providing telecommunications services in the United States
    to the date of this NAL.[^5]

# II. BACKGROUND

4.  The Commission is charged by Congress with regulating interstate and
    international telecommunications and ensuring that providers of such
    telecommunications comply with the requirements imposed on them by
    the Act and our rules.[^6] The Commission also has been charged by
    Congress to establish, administer and maintain various
    telecommunications regulatory programs, which are described in more
    detail below, and to fund these programs through assessments on the
    telecommunications providers that benefit from them. To accomplish
    these goals, the Commission established "a central repository of key
    facts about carriers" through which it could monitor the entry and
    operation of interstate telecommunications providers to ensure,
    among other things, that they are qualified, do not engage in fraud,
    and do not evade oversight.[^7] Commission rules require that, upon
    entry or anticipated entry into interstate telecommunications
    markets, telecommunications carriers register by submitting
    information on an FCC Form 499-A, also known as the annual
    Telecommunications Reporting Worksheet.[^8] The Commission also
    requires telecommunications providers to submit financial
    information on annual and, with some exceptions not applicable to
    Carrera, quarterly short-form Worksheets to enable the Commission to
    determine and collect the statutorily mandated program
    assessments.[^9]

5.  The Telecommunications Act of 1996 codified Congress' historical
    commitment to promote universal service to ensure that consumers in
    all regions of the nation have access to affordable, quality
    telecommunications services.[^10] In particular, section 254(d) of
    the Act requires, among other things, that "\[e\]very
    telecommunications carrier \[providing\] interstate
    telecommunications services . . . contribute, on an equitable and
    nondiscriminatory basis, to the specific, predictable, and
    sufficient mechanisms established by the Commission to preserve and
    advance universal service."[^11] In implementing this Congressional
    mandate, the Commission directed all telecommunications carriers
    providing interstate telecommunications services and certain other
    providers of interstate telecommunications to contribute to the
    Universal Service Fund based upon their interstate and international
    end-user telecommunications revenues.[^12]

6.  Section 225(b)(1) of the Act, which codifies Title IV of the
    Americans with Disabilities Act of 1990, directs the Commission to
    "ensure that interstate and intrastate telecommunications relay
    services are available, to the extent possible and in the most
    efficient manner, to hearing-impaired and speech-impaired
    individuals in the United States."[^13] To that end, the Commission
    established the TRS Fund to reimburse TRS providers for the costs of
    providing interstate telecommunications relay services.[^14]
    Pursuant to section 64.604(c)(5)(iii)(A) of the Commission's rules,
    every carrier that provides interstate telecommunications services
    must contribute to the TRS Fund based upon its interstate end-user
    revenues.[^15]

7.  Finally, pursuant to section 9(a)(1) of the Act and section 1.1151
    of the Commission's rules, interstate telecommunications carriers
    and other providers must pay regulatory fees to the Commission to
    cover the costs of certain regulatory activities.[^16] In
    particular, sections 1.1154 and 1.1157(b)(1) of the Commission's
    rules require that interstate telecommunications carriers pay
    regulatory fees on the basis of their interstate and international
    end-user revenues.[^17] Such fees must be paid on an annual
    basis,[^18] and failure to do so subjects a carrier to late payment
    penalties, as well as possible revocation of its operating
    authority.[^19] Further, under the Commission's "red light rule,"
    action will be withheld on any application to the Commission or
    request for authorization made by any entity that has failed to pay
    when due its regulatory fees or any other program payment, such as
    USF contributions, and if payment or payment arrangements are not
    made within 30 days from notice to the applicant, such applications
    or requests will be dismissed.[^20]

8.  The Commission has established specific procedures to administer the
    programs for universal service, telecommunications relay services,
    numbering administration and regulatory fees. A carrier must file
    Worksheets for the purpose of determining its USF, TRS, and
    regulatory fee program payments.[^21] These periodic filings trigger
    a determination of liability, if any, and subsequent billing and
    collection by the entities that administer the regulatory programs.
    For example, USAC uses the revenue projections submitted on the
    quarterly filings to determine each carrier's universal service
    contribution amount.[^22] Carriers are required to pay their monthly
    USF contribution by the date shown on their invoice.[^23] The
    Commission's rules explicitly warn contributors that failure to file
    their forms or submit their payments potentially subjects them to
    enforcement action.[^24] The TRS Administrator and the Commission
    use the prior year's revenue information provided on the annual
    Worksheet to determine amounts owed for the TRS and regulatory fee
    programs, respectively.[^25]

9.  Carrera is a Texas-based telecommunications carrier that has been
    providing telecommunications services as a competitive local
    exchange carrier and interexchange carrier since 1999.[^26] In 2004,
    the Enforcement Bureau ("Bureau") audit staff sought to identify
    resellers of telecommunications services that failed to register as
    telecommunications service providers with the Commission, and, thus,
    may also have failed to satisfy various Commission program
    requirements.[^27] To identify such resellers, the Bureau audit
    staff compared lists of resellers provided by wholesale service
    providers against the Commission's central repository of registered
    telecommunications service providers with filer identification
    numbers. If a reseller did not appear to have an identification
    number, the audit staff sent an inquiry to that reseller. On March
    30, 2004, the Bureau's audit staff sent a letter to Carrera
    requesting information pertaining to Carrera's compliance with
    section 64.1195 of the Commission's rules.[^28] Thereafter, Carrera
    registered and belatedly filed on May 5, 2004, certain revenue
    information that had been due April 1, 2004. Carrera then responded
    to the Bureau's audit staff that it had registered and filed.[^29]

10. After determining that Carrera appeared to have failed to timely
    register with the Commission or timely file required
    Telecommunications Reporting Worksheets, the Bureau issued a letter
    of inquiry ("LOI") to Carrera on July 29, 2004.[^30] The LOI
    directed Carrera, among other things, to submit a sworn written
    response to a series of questions relating to Carrera's apparent
    failure to register and file Telecommunications Reporting Worksheets
    and to make mandated federal telecommunications regulatory program
    payments. Carrera did not respond as required on August 18, 2004.
    After Bureau staff telephoned Carrera in late August regarding its
    failure to respond, Carrera requested additional time to respond to
    the LOI and the Bureau granted Carrera the extension. Carrera
    provided an incomplete response on September 13, 2004.[^31] The
    Bureau issued two additional letters to Carrera, on November 5, 2004
    and on January 21, 2005, directing it to provide complete responses
    to the original LOI and warning that "\[f\]ailure to respond fully
    to the Bureau's LOI can by itself subject Carrera to potential
    enforcement action."[^32] Carrera failed to respond to the November
    2004 and January 2005 LOIs in any manner. Carrera also failed to
    respond to telephone and voicemail messages left by Bureau staff
    regarding Carrera's continuing failure to respond. During this same
    period, Carrera continued to fail to make any universal service
    contribution and regulatory fee program payments, paid its TRS Fund
    contribution four months late and only after repeated collection
    efforts by the Administrator, failed to file the quarterly
    Telecommunications Reporting Worksheets due May 1, August 1, and
    November 1, 2004, and February 1 and May 1, 2005, and failed to file
    the annual Worksheet due April 1, 2005.

# III. DISCUSSION

11. Under section 503(b)(1)(B) of the Act, any person who is determined
    by the Commission to have willfully or repeatedly failed to comply
    with any provision of the Act or any rule, regulation, or order
    issued by the Commission shall be liable to the United States for a
    forfeiture penalty.[^33] To impose such a forfeiture penalty, the
    Commission must issue a notice of apparent liability and the person
    against whom the notice has been issued must have an opportunity to
    show, in writing, why no such forfeiture penalty should be
    imposed.[^34] The Commission will then issue a forfeiture if it
    finds by a preponderance of the evidence that the person has
    violated the Act or a Commission rule.[^35] As set forth below, we
    conclude under this standard that Carrera is apparently liable for
    forfeiture for its apparent willful and repeated violations of
    section 254(d) of the Act[^36] and sections 54.711(a),
    64.604(c)(5)(iii), 54.706(a), 1.1154, and 1.1157(b)(1) of the
    Commission's rules.[^37]

12. The fundamental issues in this case are whether Carrera apparently
    violated the Act and the Commission's rules by: (1) willfully or
    repeatedly failing to file Telecommunications Reporting
    Worksheets; (2) willfully or repeatedly failing to make requisite
    contributions toward the Universal Service and TRS Funds; (3)
    willfully or repeatedly failing to pay regulatory fees to the
    Commission; and (4) willfully or repeatedly failing to respond to
    Commission communications and comply with the associated orders. We
    answer these questions affirmatively. Based on a preponderance of
    the evidence, we conclude that Carrera is apparently liable for a
    forfeiture of \$606,500 for apparently willfully and repeatedly
    violating section 254(d) of the Act,[^38] sections 54.711(a),
    64.604(c)(5)(iii), 54.706(a), 1.1154, and 1.1157(b)(1) of the
    Commission's rules,[^39] and Commission orders.

13. Specifically, we propose the following forfeitures for apparent
    violations within the last year: (1) \$250,000 for failure to file
    five Telecommunications Reporting Worksheets; (2) \$325,000 for
    failure to make any monthly USF contributions; (3) \$13,500 for
    making its 2004 TRS Fund contribution over four months after it was
    due on July 26, 2004; (4) \$10,000 for failure to make its 2004
    regulatory fee program payment; and (5) \$8,000 for failure to
    respond to Commission directives. Although we propose forfeitures
    only for apparent violations within the last year, we discuss below
    the history of Carrera's noncompliance in prior years as useful
    background and to demonstrate the scope of Carrera's misconduct and
    the context of the misconduct that is within the statute of
    limitations period and thus covered by this NAL.

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A.  **Submission of Telecommunications Reporting Worksheets**

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14. We conclude that Carrera apparently has violated sections 54.711(a)
    and 64.604(c)(5)(iii)(B) of the Commission's rules by willfully and
    repeatedly failing to file annual and quarterly Telecommunications
    Reporting Worksheets and predecessor forms since it began providing
    telecommunications services in 1999 through the current date.[^40]
    Since 1999, Carrera has filed only one Telecommunications Reporting
    Worksheet, the 2004 annual form it filed late after receiving the
    March 30 Audit Letter.[^41] Within the past year alone, Carrera has
    failed to file the quarterly Worksheets due August 1 and November 1,
    2004 and February 1 and May 1, 2005, and the annual form due April
    1, 2005.

15. Sections 54.711(a) and 64.604(c)(5)(iii)(B) of the Commission's
    rules each clearly establish a carrier's obligation to file periodic
    Telecommunications Reporting Worksheets.[^42] A carrier's failure to
    file these Worksheets as required has serious implications for the
    USF, TRS, and regulatory fee programs. As discussed above, the
    filing of a Telecommunications Reporting Worksheet prompts a
    determination of liability for, and subsequent billing and
    collection of, regulatory fees and contributions by the
    administrators of the Universal Service and TRS Funds. With regard
    to the federal universal service program in particular, the failure
    of a carrier such as Carrera to abide by its federal filing
    obligation has a direct and profound detrimental impact by removing
    from the base of USF contributions telecommunications revenues that
    otherwise should be included, thereby shifting to compliant carriers
    additional economic burdens associated with the federal universal
    service program.[^43] Consequently, a carrier's failure to file
    required Worksheets thwarts the very purpose for which Congress
    enacted section 254(d) -- to ensure that every interstate carrier
    "contribute, on an equitable and nondiscriminatory basis, to the
    specific, predictable, and sufficient mechanisms established by the
    Commission to preserve and advance universal service."[^44] Viewed
    in this context, the Telecommunications Reporting Worksheet is not
    only an administrative tool, but a fundamental and critical
    component of the Commission's universal service, TRS, and regulatory
    fee programs.

16. As noted above, Carrera untimely registered and late filed the 2004
    annual Telecommunications Reporting Worksheet (reporting 2003
    revenue and due April 1, 2004) on May 5, 2004, and did so only after
    receiving an inquiry from the Commission.[^45] Since May 5, 2004,
    Carrera has not filed any required Worksheet, including the 2005
    annual Worksheet due April 1, 2005. Thus, Carrera still has not
    submitted all the information it is obligated to provide under our
    rules, including the financial information that is needed to
    calculate accurately the regulatory program payments it failed to
    make from 1999 through 2002 and from 2004 to the present. Based on a
    preponderance of the evidence, we find that Carrera apparently has
    violated section 254 of the Act[^46] and sections 54.711 and 64.604
    of the Commission's rules[^47] by willfully and repeatedly failing
    to file required information with the Commission on multiple
    occasions since 1999, including failure to make five filings within
    the last year, the time period covered by this NAL. The NAL proposes
    a forfeiture for Carrera's failure to file the Worksheets due August
    1 and November 1, 2004, and February 1, April 1, and May 1, 2005.

    **B. Universal Service Contributions**

17. We further conclude that Carrera apparently violated section 254(d)
    of the Act and section 54.706 of the Commission's rules by willfully
    and repeatedly failing to contribute to universal service support
    mechanisms.[^48] Section 54.706(c) of the Commission's rules
    unambiguously directs that "entities \[providing\] interstate
    telecommunications to the public . . . for a fee . . . contribute to
    the universal service support programs."[^49] Although Carrera has
    been providing interstate telecommunications services to end-users
    since 1999, Carrera has made no universal service contributions to
    date.[^50] During the relevant period, Carrera was required,
    pursuant to section 54.706(b) of the Commission's rules, to
    contribute to universal service mechanisms based upon either its
    historical or projected revenues.[^51] We reiterate that Carrera has
    not yet provided the information necessary to calculate how much it
    owes for past universal service contribution obligations, nor has it
    made any attempt to pay these long past due obligations.[^52] As we
    previously have stated,

    \[c\]arrier nonpayment of universal service contributions undermines
    the efficiency and effectiveness of the universal service support
    mechanisms. Moreover, delinquent carriers may obtain a competitive
    advantage over carriers complying with the Act and our rules. We
    consider universal service nonpayment to be a serious threat to a
    key goal of Congress and one of the Commission's primary
    responsibilities.[^53]

    Based on a preponderance of the evidence, we find that Carrera
    apparently has violated sections 254(d) of the Act and 54.706 of the
    Commission's rules by willfully and repeatedly failing to make any
    of its monthly universal service contribution payments for a period
    of years, including 12 such failures within the past year.

    **C. Telecommunications Relay Service Contributions**

18. We also find that Carrera apparently has violated section
    64.604(c)(5)(iii)(A) of the Commission's rules by failing to make
    required contributions to the interstate TRS Fund.[^54] As an
    interstate telecommunications carrier, Carrera is obligated to
    contribute to the TRS Fund on the basis of its interstate and
    international end-user telecommunications revenues.[^55] A carrier's
    contribution to the TRS Fund is based upon its subject revenues for
    the prior calendar year and a contribution factor determined
    annually by the Commission.[^56] Subject carriers must make TRS
    contributions on an annual basis, with certain exceptions that are
    not applicable to Carrera.[^57]

19. Carrera's first TRS payment was made only on November 29, 2004, over
    five years after it first began offering interstate
    telecommunications services, four months after its 2004 TRS
    contribution became due on July 26, 2004, and eight months after it
    first received a letter of inquiry from the Commission regarding its
    compliance with the Commission's rules.[^58] We note further that
    Carrera has not yet provided the information necessary to calculate
    how much it owes for past TRS contribution obligations, nor has it
    made any attempt to pay these long past due obligations.[^59] Based
    on a preponderance of the evidence, we therefore find that Carrera
    apparently has violated section 64.604 of the Commission's rules by
    willfully and repeatedly failing to pay its TRS contributions when
    due, including its failure to make on a timely basis the payment due
    in July 2004.

    **D. Payment of Regulatory Fees**

20. We also conclude that Carrera apparently has violated sections
    1.1154 and 1.1157(b)(1) of the Commission's rules by failing to pay
    required regulatory fees to the Commission.[^60] As an interstate
    telecommunications service provider, Carrera was required as early
    as 2000 to pay regulatory fees.[^61] Carrera admits and Commission
    records corroborate that Carrera has not made any regulatory fee
    program payment.[^62] Carrera apparently thus has failed to make its
    annual regulatory fee program payments a total of five times. For
    these reasons, we find that Carrera apparently has violated section
    1.1157 of the Commission's rules by willfully and repeatedly failing
    to make its statutorily mandated regulatory fee program payments,
    including one such failure in the past year.

    **E. Failure to Respond to Commission Communications.**

21. The Commission has broad authority to investigate the entities it
    regulates under, *inter alia*, sections 4(i), 4(j), 218, and 403 of
    the Act.[^63] Section 4(i) authorizes the Commission to "issue such
    orders, not inconsistent with this Act, as may be necessary in the
    execution of its functions," and section 4(j) states that "the
    Commission may conduct its proceedings in such manner as will best
    conduce to the proper dispatch of business and to the ends of
    justice." Section 218 of the Act authorizes the Commission to
    "obtain from . . . carriers . . . full and complete information
    necessary to enable the Commission to perform the duties and carry
    out the objects for which it was created." Section 416 of the Act
    requires carriers to follow Commission orders.[^64]

22. Carrera apparently willfully and repeatedly failed to provide
    certain documents and information required by the Bureau in order to
    enable the Commission to perform its enforcement function.
    Specifically, Carrera failed to respond fully to the first LOI the
    Bureau issued and failed to respond in any manner to the two
    additional LOIs the Bureau issued. As indicated above, on July 29,
    2004, the Bureau directed Carrera to provide certain documents and
    information in order to enable the Commission to perform its
    enforcement function and evaluate allegations that Carrera had
    violated Commission rules. Carrera did not respond to the first LOI
    as required on August 18, 2004, or request an extension of time in
    which to meet its obligations under the LOI. Instead, only after
    Bureau staff telephoned Carrera in late August regarding its failure
    to respond and retroactively granted Carrera an extension of time in
    which to respond in full to the LOI, Carrera provided an incomplete
    response on September 13, 2004.[^65] The Bureau issued two
    subsequent LOIs directing Carrera to provide a complete
    response.[^66] Carrera failed to respond in any manner to these LOIs
    or to telephone or voicemail messages made by Bureau staff regarding
    Carrera's continuing failure to respond. Carrera received the LOIs,
    as evidenced by return of the mail receipt to the Bureau and
    confirmation of the facsimile transmission.[^67] Carrera's willful
    and repeated failures to respond to the Bureau's LOIs constitute
    apparent violations of Commission orders.[^68] Based on a
    preponderance of the evidence, we find that Carrera apparently has
    willfully and repeatedly failed to respond to the Bureau's LOIs.

    **F. Proposed Forfeiture**

23. Section 503(b)(1)(B) of the Act provides that any person that
    willfully or repeatedly fails to comply with any provision of the
    Act or any rule, regulation, or order issued by the Commission,
    shall be liable to the United States for a forfeiture penalty.[^69]
    For the apparent violations in this case, section 503(b)(2)(B) of
    the Act authorizes the Commission to assess a forfeiture of up to
    \$120,000 for each violation or each day of a continuing violation,
    up to a statutory maximum of \$1.2 million for a single act or
    failure to act before September 7, 2004, and up to \$130,000 for
    each violation or each day of a continuing violation, up to a
    statutory maximum of \$1.325 million for a single act or failure to
    act for violations occurring on or after September 7, 2004.[^70] In
    determining the appropriate forfeiture amount, we consider the
    factors enumerated in section 503(b)(2)(D) of the Act, including
    "the nature, circumstances, extent and gravity of the violation,
    and, with respect to the violator, the degree of culpability, any
    history of prior offenses, ability to pay, and such other matters as
    justice may require."[^71]

24. Under section 503(b)(6) of the Act, we may only propose forfeitures
    for apparent violations that occurred within one year of the date of
    this NAL.[^72] Nevertheless, section 503(b) does not bar us from
    assessing whether Carrera's conduct prior to that time period
    apparently violated the Act or our rules in determining the
    appropriate forfeiture amount for those violations within the
    statute of limitations.[^73] Therefore, although we find that
    Carrera apparently violated the Act and our rules for over five
    years, we propose forfeitures here only for violations that occurred
    within the last year.

25. In the past, we have held that a substantial forfeiture of \$50,000
    is warranted for a carrier's failure to file a Telecommunications
    Reporting Worksheet for revenue reporting purposes.[^74] We find
    that Carrera's willful and repeated failure to file periodic
    Telecommunications Reporting Worksheets is egregious. As we noted
    above, a carrier's obligation to file these Worksheets is directly
    linked to, and thus has serious implications for, administration of
    the USF, TRS, and regulatory fee programs. By ignoring its reporting
    obligations, Carrera has unilaterally shifted to compliant carriers
    and their customers the economic costs associated with the universal
    service, TRS, and regulatory fee programs. Therefore, we find that
    Carrera is apparently liable for a \$250,000 forfeiture for its
    failure to file five Worksheets within the last year; *i.e*., those
    due August 1 and November 1, 2004, and February 1, April 1, and May
    1 2005.

26. Based on the facts above, it also appears that Carrera has failed to
    make the requisite contributions into the Universal Service Fund for
    a period of over five years. Nonpayment of universal service
    contributions is an egregious offense that bestows on delinquent
    carriers an unfair competitive advantage by shifting to compliant
    carriers the economic costs and burdens associated with universal
    service. A carrier's failure to make required universal service
    contributions hampers realization of Congress' policy objective in
    section 254(d) of the Act to ensure the equitable and
    non-discriminatory distribution of universal service costs among all
    telecommunications providers.[^75] The Commission has established a
    base forfeiture amount of \$20,000 for each month in which a carrier
    has failed to make required universal service contributions.[^76]
    Consequently, we find Carrera apparently liable for a base
    forfeiture of \$240,000 for its willful and repeated failure to make
    universal service contributions for each of the last twelve months.

27. In the past, we have calculated upward adjustments to forfeitures
    for failure to make USF and TRS payments based on half of the
    company's unpaid contributions.[^77] In situations such as this one,
    however, where the subject company has failed to file timely and
    accurate information, we cannot determine the full amount owed to
    the funds until and unless the subject company provides complete and
    accurate information to the fund administrators. Thus, our ability
    to calculate and assess accurately an upward adjustment based on a
    percentage of unpaid contribution amounts can be inhibited by the
    violator. In this regard, Commission enforcement action can be
    delayed pending the company's full revenue disclosures, or
    foreclosed altogether if the statute of limitations expires during
    the period of delay. In such circumstances, companies that comply
    with our registration and filing requirements might be worse off
    than those, like Carrera, that appear to ignore them. Such a result
    is not only unfair, but is bad public policy. During the course of
    the investigation, however, we did receive certain revenue
    information which we have used to estimate the amount Carrera should
    have paid in USF contributions since it began operations
    (approximately \$170,000) for purposes of calculating an upward
    adjustment of about half that amount. Therefore, we propose an
    upward adjustment of \$85,000 for Carrera's apparent failure to make
    universal service contributions, taking into account all of the
    factors enumerated in section 503(b)(2)(D) of the Act. We thus find
    Carrera liable for a total proposed forfeiture of \$325,000 for its
    apparent willful and repeated failure to make contributions into the
    Universal Service Fund.

28. We also find that Carrera apparently has failed to make any TRS
    contributions from 2000 until November 29, 2004. The November 2004
    contribution was for the 2004 TRS obligation billed by the TRS
    administrator and due on July 26, 2004, and Carrera made this
    payment only after it received multiple Bureau inquiries into its
    compliance with the related rules.[^78] Where a carrier fails to
    satisfy its TRS obligations for an extended period of time, it
    thwarts the purpose for which Congress established section 225(b)(1)
    of the Act and its implementing regulations \-- to ensure that
    telecommunications relay services "are available to the extent
    possible and in the most efficient manner, to hearing-impaired and
    speech-impaired individuals in the United States."[^79]

29. The Commission has established a base forfeiture amount of \$10,000
    for each instance in which a carrier fails to make required TRS
    contributions.[^80] In light of Carrera's failure to pay timely its
    TRS obligation for the 2004-2005 funding period, we find it
    apparently liable for a base forfeiture in the amount of \$10,000.
    For the reasons discussed above regarding Carrera's failure to make
    universal service contributions and generally consistent with
    Commission precedent,[^81] we find that an upward adjustment in an
    amount approximately one half of the carrier's estimated unpaid TRS
    contributions (approximately \$7,000) is appropriate for Carrera's
    apparent failure to make TRS contributions. Taking into account the
    factors enumerated in section 503(b)(2)(D) of the Act, we conclude
    that a \$3,500 upward adjustment is reasonable. Consequently, we
    find Carrera liable for a total proposed forfeiture of \$13,500 for
    its willful and repeated failure to satisfy its TRS obligations for
    the 2004-2005 funding period.

30. We also conclude that Carrera has apparently failed to make any
    regulatory fee payments to the Commission since it became obligated
    to do so in 2000 through the current date, including the 2004
    regulatory fee payment due August 19, 2004.[^82] A carrier's failure
    to contribute toward the costs of certain regulatory activities from
    which it benefits undermines the efficiency, equitability, and
    effectiveness of the regulatory fee program and accomplishment of
    Congress' objectives in section 9(a)(1) of the Act. The Commission
    has not established a base forfeiture amount for failure to pay
    regulatory fees. Regulatory fee obligations, however, are similar to
    TRS contributions in that they are due annually and are assessed at
    similar rates.[^83] For this reason, we find that a base forfeiture
    in the amount of \$10,000 for failure to make required regulatory
    fee payments is appropriate. We, therefore, find Carrera apparently
    liable for a \$10,000 forfeiture for its apparent violation of
    sections 1.1154 and 1.1157 of the Commission's rules.

31. Finally, based on the facts discussed above, we also conclude that
    Carrera apparently willfully and repeatedly failed to respond to the
    Bureau's LOIs. Specifically with respect to the LOI issued August
    18, 2004, Carrera provided only an untimely and partial response and
    with respect to the LOIs issued November 5, 2004 and January 21,
    2005, Carrera never responded in any manner, despite repeated
    attempts by Bureau staff to elicit responses from Carrera.[^84]
    Section 1.80 of the Commission\'s rules and the Commission\'s
    Forfeiture Policy Statement establish a base forfeiture amount of
    \$4,000 for failure to respond to a Commission communication.[^85]
    However, misconduct of this type warrants an upward adjustment
    because it exhibits a disregard for the Commission's authority that
    cannot be tolerated, and, more importantly, it threatens to
    compromise the Commission's ability to adequately investigate
    violations of its rules.[^86] The Bureau must act swiftly to
    investigate potential violations of the Communications Act or the
    Commission's rules in order to take action within the one year
    period specified in section 503(b)(6) of the Act.[^87] Prompt and
    full responses to Bureau inquiry letters are, accordingly, critical
    to the Commission's enforcement function. Recently the Bureau
    assessed a forfeiture of \$20,000 against a company that failed to
    respond to a Bureau LOI.[^88] In that case, the company, represented
    by counsel, requested several extensions of time in which to respond
    to the LOI, but then failed to provide any of the required
    information or documents.[^89] In Carrera's case, the company is not
    represented by counsel in this matter and did provide a portion of
    the information and documents it was ordered to produce, although
    untimely and only after Bureau efforts to obtain Carrera's
    compliance. Taking into account the factors enumerated in section
    503(b)(2)(D) of the Act, we conclude that an upward adjustment of
    the base forfeiture amount to \$8,000 is warranted in this case for
    repeatedly and willfully failing to respond to Commission
    communications.

    **IV. CONCLUSION**

32. In light of the seriousness, duration and scope of the apparent
    violations, and to ensure that a company with substantial revenues
    such as Carrera does not consider the proposed forfeiture merely "an
    affordable cost of doing business,"[^90] we find that a proposed
    forfeiture in the amount of \$606,500 is warranted. As discussed
    above, this proposed forfeiture amount includes: (1) a total
    proposed penalty of \$250,000 for failing to file five
    Telecommunications Reporting Worksheets within the past year; (2) a
    total proposed penalty of \$325,000 for failing to make any of its
    monthly universal service contributions within the past year; (3) a
    proposed total penalty of \$13,500 for failing to make its 2004 TRS
    program contribution when due; (4) a total proposed penalty of
    \$10,000 for failing to make its 2004 regulatory fee program
    payment; and (5) a total proposed penalty of \$8,000 for failing to
    respond to Commission communications.

33. We caution that additional violations of the Act or the Commission's
    rules could subject Carrera to further enforcement action. Such
    action could take the form of higher monetary forfeitures and/or
    possible revocation of Carrera's operating authority, including
    disqualification of Carrera's principals from the provision of any
    interstate common carrier services without the prior consent of the
    Commission.[^91] Further, we also note that Carrera is subject to
    the Commission's "red light rule" as a result of the non-payments
    detailed above and the Commission will not act on, and may dismiss,
    any application or request for authorization filed by Carrera in
    accordance with the Commission's rules.[^92] We order Carrera to
    submit within thirty days, either as part of its response to this
    NAL or separately, a report, supported by a sworn statement or
    declaration under penalty of perjury of a corporate officer, stating
    its plan to come into compliance with the relevant payment and
    reporting rules discussed herein. We further order Carrera to file
    with USAC within thirty days all Annual Telecommunications Reporting
    Worksheets and amended Worksheets required under the Commission's
    rules from the date that Carrera commenced providing
    telecommunications services in the United States to the date of this
    NAL.

    **V. ORDERING CLAUSES**

34. ACCORDINGLY, IT IS ORDERED THAT, pursuant to section 503(b) of the
    Communications Act of 1934, as amended, 47 U.S.C. § 503(b), and
    section 1.80 of the Commission's rules, 47 C.F.R. § 1.80, that
    Carrera is hereby NOTIFIED of its APPARENT LIABILITY FOR A
    FORFEITURE in the amount of \$606,500 for willfully and repeatedly
    violating the Act and the Commission's rules.

35. IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of the
    Commission's Rules, 47 C.F.R. § 1.80, within thirty days of the
    release date of this NOTICE OF APPARENT LIABILITY, Carrera SHALL PAY
    the full amount of the proposed forfeiture or SHALL FILE a written
    statement seeking reduction or cancellation of the proposed
    forfeiture.

36. IT IS FURTHER ORDERED THAT, pursuant to sections 4(i), 9(a)(1),
    219(b), 254(d), and 225(b)(1) of the Act, 47 U.S.C. §§ 4(i),
    159(a)(1), 219(b), 254(d), and 225(b)(1) and sections 54.706(a),
    64.604(c)(5)(iii), 54.711(a), 1.1154, and 1.1157(b)(1) of the
    Commission's rules, 47 C.F.R. §§ 54.706(a), 64.604(c)(5)(iii),
    54.711(a), 1.1154, and 1.1157(b)(1), within thirty days of the
    release of this NOTICE OF APPARENT LIABILITY AND ORDER, Carrera
    SHALL SUBMIT a report, supported by a sworn statement or declaration
    under penalty of perjury by a corporate officer, stating its plan
    promptly to come into compliance with the payment and reporting
    rules discussed herein. Carrera also SHALL SUBMIT to USAC within
    thirty days all Annual Telecommunications Reporting Worksheets and
    amended Worksheets required under the Commission's rules from the
    date that Carrera commenced providing telecommunications services to
    the date of this NAL.

37. Payment of the forfeiture must be made by check or similar
    instrument, payable to the order of the Federal Communications
    Commission.  The payment must include the NAL/Acct. No. and FRN No.
    referenced above.  Payment by check or money order may be mailed to
    Federal Communications Commission, P.O. Box 358340, Pittsburgh, PA
    15251-8340.  Payment by overnight mail may be sent to Mellon
    Bank /LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA
    15251.   Payment by wire transfer may be made to ABA
    Number 043000261, receiving bank Mellon Bank, and account
    number 911-6106.

38. The response, if any, to this NOTICE OF APPARENT LIABILITY must be
    mailed to William H. Davenport, Chief, Investigations and Hearings
    Division, Enforcement Bureau, Federal Communications Commission, 445
    12^th^ Street, S.W., Washington, D.C. 20554 and must include the
    NAL/Acct. No. referenced above.

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

40. Requests for payment of the full amount of this NAL under an
    installment plan should be sent to Chief, Credit and Management
    Center, 445 12^th^ Street, S.W., Washington, D.C. 20554.[^93]

41. IT IS FURTHER ORDERED that a copy of this NOTICE OF APPARENT
    LIABILITY AND ORDER shall be sent by certified mail, return receipt
    requested, to Ms. Joann P. Bennett, General Partner, Carrera
    Communications, LP, P.O. Box 90417, San Antonio, TX , 78209.

    FEDERAL COMMUNICATIONS COMMISSION

    Marlene H. Dortch

    Secretary

[^1]: 47 U.S.C. § 254(d).

[^2]: 47 C.F.R. §§ 54.711(a), 64.604.

[^3]: 47 C.F.R. §§ 54.706(a), 64.604(c)(5)(iii)(A).

[^4]: 47 C.F.R. §§ 1.1154, 1.1157(b)(1).

[^5]: The Commission has appointed USAC as the administrator of federal
    universal service support mechanisms and has made it responsible for
    billing and collection of USF contributions. 47 C.F.R. §§ 54.701(a),
    54.702(b).

[^6]: *See, e.g.,* 47 U.S.C. § 151.

[^7]: *See* *Implementation of the Subscriber Carrier Selection
    Provisions of the Telecommunications Act of 1996*, Third Report and
    Order and Second Order on Reconsideration, 15 FCC Rcd 15996, 16024
    (2000) ("*Carrier Selection Order*"). Existing carriers such as
    Carrera were required to register on or before April 2, 2001. *Id*.
    at 15996, 16025 (requiring existing carriers to register on the date
    the new registration requirement becomes effective); 66 Fed. Reg.
    17083 (Mar. 29, 2001) (announcing that the OMB approved information
    collection requirement in 4 C.F.R. § 64.1195 would take effect on
    April 2, 2001).

[^8]: 47 C.F.R. § 64.1195.

[^9]: *See* 47 U.S.C. §§ 159(a),(b); 225(d)(3); 251(e)(2); 254(d). In
    1999, to streamline the administration of the programs and to ease
    the burden on regulatees, the Commission consolidated the
    information filing requirements for multiple telecommunications
    regulatory programs into the annual Telecommunications Reporting
    Worksheet. *See* *1998 Biennial Regulatory Review,* Report and
    Order, 14 FCC Rcd 16602 (1999). The next year the Commission revised
    the Telecommunications Reporting Worksheet slightly to collect the
    additional information necessary to achieve its goal of establishing
    a central repository for interstate telecommunications providers by
    the least provider-burdensome method. *Carrier Selection Order*, 15
    FCC Rcd at 16026.

[^10]: The Telecommunications Act of 1996 amended the Communications Act
    of 1934. *See* Telecommunications Act of 1996, Pub. L. No. 104-104,
    110 Stat. 56 (1996).

[^11]: 47 U.S.C. § 254(d).

[^12]: 47 C.F.R. § 54.706(b). Beginning April 1, 2003, carrier
    contributions were based on a carrier's projected, rather than
    historical, revenues. *Id.*

[^13]: 47 U.S.C. § 225(b)(1).

[^14]: *See Telecommunications Relay Services and the Americans with
    Disabilities Act of 1990*, Third Report and Order, 8 FCC Rcd 5300,
    5301, ¶ 7 (1993). Telecommunications relay services enable persons
    with hearing and speech disabilities to communicate by telephone
    with persons who may or may not have such disabilities. Such
    services provide telephone access to a significant number of
    Americans who, without it, might not be able to make or receive
    calls from others. *See Telecommunications Relay Services and
    Speech-to-Speech Services for Individuals with Hearing and Speech
    Disabilities*, Report and Order, 15 FCC Rcd 5140, 5143, ¶ 5 (2000).
    NECA currently is responsible for administering the TRS Fund.

[^15]: 47 C.F.R. § 64.604(c)(5)(iii)(A).

[^16]: Section 9(a)(1) of the Act directs the Commission to "assess and
    collect regulatory fees to recover the costs of the following
    regulatory activities of the Commission: enforcement activities,
    policy and rulemaking activities, user information services, and
    international activities." 47 U.S.C. § 159(a)(1); *see also* 47
    C.F.R. § 1.1151.

[^17]: *See* 47 C.F.R. §§ 1.1154, 1.1157(b)(1).

[^18]: 47 C.F.R. § 1.1157(b)(1). Section 1.1154 of the Commission's
    rules sets forth the schedule of annual regulatory charges and
    filing locations for common carrier services. *See* 47 C.F.R. §
    1.1154.

[^19]: *See* 47 U.S.C. §§ 159(c)(1), (c)(3).

[^20]: 47 C.F.R. § 1.1910. The rule went into effect on November 1,
    2004. *See* "FCC Announces Brief Delay in Enforcement of Red Light
    Rule," *Public Notice,* 19 FCC Rcd 19452 (2004).

[^21]: Upon submission of a Form 499-A registration, the carrier is
    issued a filer identification number by USAC. The filer
    identification number is then to be included on all further filings
    by the company and is used by the Commission and its administrators
    to track the carrier's contributions and invoices.

[^22]: Individual universal service contribution amounts that are based
    upon quarterly filings are subject to an annual true-up. *See
    Federal-State Joint Board on Universal Service, Petition for
    Reconsideration filed by AT&T,* Report and Order and Order on
    Reconsideration, 16 FCC Rcd 5748 (2001); 47 C.F.R. § 54.709(a).

[^23]: *See* *Globcom, Inc.* Notice of Apparent Liability for Forfeiture
    and Order*,* 18 FCC Rcd 19893, 19896 (2003) ("*Globcom*"); 47 C.F.R.
    § 54.711(a) ("The Commission shall announce by Public Notice
    published in the Federal Register and on its website the manner of
    payment and the dates by which payments must be made."). *See,
    e.g.,* "Proposed Third Quarter 2003 Contribution Factor," *Public
    Notice*, 18 FCC Rcd 11442 (WCB 2003) ("Contribution payments are due
    on the date shown on the \[USAC\] invoice.") The Act and our rules,
    however, do not condition payment on receipt of an invoice or other
    notice from USAC. *See* 47 U.S.C. § 254(d); 47 C.F.R. § 54.706(b). A
    carrier that does not file may fail to receive an invoice from USAC,
    but is nonetheless required to contribute to the universal service
    fund, unless its revenues are considered *de minimus.* *See
    Globcom*, 18 FCC Rcd at 19896, n. 22. The instructions for the
    Telecommunications Reporting Worksheet include tables for carriers
    to determine their annual contributions. Carrera does not qualify
    for the *de minimus* exception.

[^24]: 47 C.F.R. § 54.713.

[^25]: *See* 47 C.F.R. § 64.604(c); *Assessment and Collection of
    Regulatory Fees for Fiscal Year 2004*, Report and Order, 19 FCC Rcd
    11662, 11675, 11717 (2004).

[^26]: *See* www.callcarrera.com.

[^27]: *See* 47 C.F.R. § 64.1195(a).

[^28]: *See* letter from Hugh Boyle, Chief Auditor, Investigations and
    Hearings Division, Enforcement Bureau, to Carrera dated March 30,
    2004 ("March 30 Audit Letter").

[^29]: *See* electronic mail response to the March 30 Audit Letter from
    Carrera dated May 7, 2004.

[^30]: Letter from Hillary S. DeNigro, Deputy Chief, Investigations and
    Hearings Division, Enforcement Bureau, to Joann P. Bennett, Carrera,
    dated July 29, 2004.

[^31]: Letter from Joann P. Bennett, General Partner, Carrera, to
    Hillary S. DeNigro, Deputy Chief, Investigations and Hearings
    Division, Enforcement Bureau, dated September 10, 2004, with
    facsimile transmission date of September 13, 2004 ("*Carrera
    Response*"). Carrera did not respond fully to LOI Inquiry Numbers 8,
    9, 10, and 12 regarding various regulatory program payments.^?^ In
    addition, the affidavit Carrera supplied to support its response did
    not contain a statement that it was made under penalty of perjury,
    as specifically required in the LOI, and thus failed to conform to
    Commission Rule 1.16, 47 C.F.R. § 1.16. Moreover, in response to LOI
    Inquiry Number 5, Carrera did not provide a specific response
    setting forth the required revenue information.

[^32]: Letters from Hillary S. DeNigro, Deputy Chief, Investigations and
    Hearings Division, Enforcement Bureau, to Joann P. Bennett, Carrera,
    dated November 5, 2004 and January 21, 2005. Carrera's receipt of
    the letters was confirmed by return of the mail receipts to the
    Bureau and confirmations of the facsimile transmissions.

[^33]: 47 U.S.C. § 503(b)(1)(B); 47 C.F.R. § 1.80(a)(1). Section
    312(f)(1) of the Act defines willful as "the conscious and
    deliberate commission or omission of \[any\] act, irrespective of
    any intent to violate" the law. 47 U.S.C. § 312(f)(1). The
    legislative history to section 312(f)(1) of the Act clarifies that
    this definition of willful applies to both sections 312 and 503(b)
    of the Act, H.R. Rep. No. 97-765, 97^th^ Cong. 2d Sess. 51 (1982),
    and the Commission has so interpreted the term in the section 503(b)
    context. *See, e.g., Application for Review of Southern California
    Broadcasting Co.*, Memorandum Opinion and Order, 6 FCC Rcd 4387,
    4388 (1991) ("*Southern California Broadcasting Co.*"). The
    Commission may also assess a forfeiture for violations that are
    merely repeated, and not willful. *See, e.g.,* *Callais Cablevision,
    Inc., Grand Isle, Louisiana*, Notice of Apparent Liability for
    Monetary Forfeiture, 16 FCC Rcd 1359 (2001) (issuing a Notice of
    Apparent Liability for, *inter alia*, a cable television operator's
    repeated signal leakage). "Repeated" means that the act was
    committed or omitted more than once, or lasts more than one day.
    *Callais Cablevision, Inc.,* 16 FCC Rcd at 1362, ¶ 9; *Southern
    California Broadcasting Co.,* 6 FCC Rcd at 4388, ¶ 5.

[^34]: 47 U.S.C. § 503(b); 47 C.F.R. § 1.80(f).

[^35]: *See, e.g., SBC Communications, Inc*., Forfeiture Order, 17 FCC
    Rcd 7589, 7591, ¶ 4 (2002) ("*SBC Forfeiture Order*") (forfeiture
    paid).

[^36]: 47 U.S.C. § 254(d).

[^37]: 47 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii), 54.706(a), 1.1154,
    1.1157(b)(1).

[^38]: 47 U.S.C. § 254(d).

[^39]: 47 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii), 54.706(a), 1.1154,
    1.1157(b)(1).

[^40]: 47 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii)(B).

[^41]: In response to the relevant LOI inquiry directing Carrera to
    provide copies of all Telecommunications Reporting Worksheets it has
    filed, Carrera provided only the annual form that it late filed on
    May 5, 2004. USAC records confirm that that it is the only Worksheet
    Carrera has filed to date. With certain exceptions that do not apply
    to Carrera, interstate telecommunications carriers must file
    quarterly, reporting revenue information in February, May, August
    and November of each year, and annually, by April 1 of each year.
    *See* Instructions for Completing the Worksheet for Filing
    Contributions to Telecommunications Relay Service, Universal
    Service, Number Administration and Local Number Portability Support
    Mechanisms, FCC Form 499, April 2004, at 9.

[^42]: *See* 47 C.F.R. §§ 54.711(a), 64.604(c)(5)(iii)(B).

[^43]: Sixty days prior to the start of each quarter, USAC is required
    to provide the Commission with a projection of the high cost, low
    income, schools and libraries, and rural health care funding
    requirements for the following quarter. *See*
    [www.universalservice.org/overview/filings](http://www.universalservice.org/overview/filings).
    Based on USAC's projection of the needs of the USF, and revenue
    projections from the registered carriers subject to universal
    service requirements, the Commission establishes a specific
    percentage of interstate and international end-user revenues that
    each subject telecommunications provider must contribute toward the
    USF. This percentage is called the contribution factor. The
    contribution factor, and, consequently, the amount owed to the USF
    by each affected telecommunications company, changes each quarter,
    depending on the needs of the USF and carrier-provided revenue
    projections. *See*
    [www.fcc.gov/wcb/universal_service/quarter](http://www.fcc.gov/wcb/universal_service/quarter).
    Thus, in cases where a carrier, such as Carrera, fails to file
    required Worksheets reporting its revenue projections in a timely
    fashion, its revenues are excluded from the contribution base from
    which universal assessments are derived, and the economic burden of
    contributing falls disproportionately on carriers that have
    satisfied their reporting obligations.

[^44]: 47 U.S.C. § 254(d).

[^45]: *See* March 30 Audit Letter*.* The Commission has repeatedly held
    that post-investigation corrective measures are not sufficient to
    avoid enforcement action. *See AT&T Wireless Services, Inc.,*
    Forfeiture Order, 17 FCC Rcd 21866, 21870-71 (2002); *America's
    Tele-Network Corp.*, Order of Forfeiture, 16 FCC Rcd 22350, 22355, ¶
    15 (2001); *Coleman Enters., Inc. d/b/a/ Local Long Distance, Inc.*,
    Order of Forfeiture, 15 FCC Rcd 24385, 24388, ¶ 8 (2000).

[^46]: 47 U.S.C. § 254.

[^47]: 47 C.F.R. §§ 1.1157, 54.711, 64.604.

[^48]: 47 U.S.C. § 254(d); 47 C.F.R. § 54.706.

[^49]: 47 C.F.R. § 54.706(c).

[^50]: *See* *Carrera Response* at 3. USAC's records show further that
    Carrera has not made any universal service support payments to date.

[^51]: *See* 47 C.F.R. § 54.706(c).

[^52]: In response to a Commission inquiry to provide all FCC Form 499
    filings, Carrera submitted only the FCC Form 499-A filed on May 5,
    2004. USAC's records indicate that Carrera did not and has not filed
    annual Telecommunications Reporting Worksheets for any years prior
    to 2004, has not filed any quarterly forms, and has not filed the
    annual Worksheet due April 1, 2005.

[^53]: *Globcom,* 18 FCC Rcd at 19903 ¶ 26.

[^54]: 47 C.F.R. § 64.604(c)(5)(iii)(A).

[^55]: *Id.* Each subject carrier must contribute at least \$25 per
    year. Carriers whose annual contributions are less than \$1,200 must
    pay the entire amount at the beginning of the contribution period.
    *Id.* 47 C.F.R. § 64.604(c)(5)(iii)(B). Otherwise, carriers may
    divide their contributions into equal monthly payments. *Id.*

[^56]: 47 C.F.R. § 64.604(c)(5)(iii)(B).

[^57]: *See* 47 C.F.R. § 64.604(c)(5)(iii)(B).

[^58]: The TRS Administrator's records indicate that Carrera made its
    2004 contribution payment on November 29, 2004; *see also Carrera
    Response* at 3 (stating that Carrera had not made any TRS payments
    as of the date of its response, September 10, 2004.)

[^59]: In response to a Commission inquiry to provide all FCC Form 499
    filings, Carrera submitted the FCC Form 499-A filed on May 5, 2004.
    USAC's records indicate that Carrera did not and has not filed
    annual Telecommunications Reporting Worksheets for this year or any
    years prior to 2004.

[^60]: 47 C.F.R. §§ 1.1154, 1.1157. Payments of standard regulatory fees
    applicable to common carrier services must be filed in full on an
    annual basis. *Id.* § 1.1157(b)(1).

[^61]: Regulatory fee program payments for interstate telecommunications
    providers are calculated on prior year revenue. *See, e.g.,
    Assessment and Collection of Regulatory Fees for Fiscal Year 2004*,
    19 FCC Rcd at 11675.

[^62]: *See Carrera Response* at 3 (stating that Carrera has not made
    payments).

[^63]: 47 U.S.C. §§ 4, 218, & 403.

[^64]: 47 U.S.C. § 416.

[^65]: *See supra Carrera Response,* note 31.

[^66]: Letters from Hillary S. DeNigro, Deputy Chief, Investigations and
    Hearings Division, Enforcement Bureau, to Joann P. Bennett, Carrera,
    dated November 5, 2004 and January 21, 2005.

[^67]: *See supra* note 32.

[^68]: *See, e.g., SBC Forfeiture Order*, 17 FCC Rcd at 7600, ¶ 28*;
    Globcom,* 18 FCC Rcd at 19898, n. 36; *BigZoo.com Corp*., Notice of
    Apparent Liability for Forfeiture and Order, 19 FCC Rcd 24437 (Enf.
    Bur. 2004) ("*BigZoo*.*com Corp.* "), Order of Forfeiture, 20 FCC
    Rcd 3954 (Enf. Bur. 2005); *American Family Association, Licensee of
    Station KBMP(FM), Enterprise, Kansas*, Notice of Apparent Liability
    for Forfeiture, 19 FCC Rcd 14072, Forfeiture Order, 19 FCC Rcd 22025
    (Enf. Bur. 2004); *World Communications Satellite Systems, Inc*.,
    Notice of Apparent Liability for Forfeiture, 18 FCC Rcd 18545 (Enf.
    Bur. 2003) ("*WCSS Forfeiture Order*"); *Donald W. Kaminski, Jr*.,
    Notice of Apparent Liability for Forfeiture, 16 FCC Rcd 10707 (Enf.
    Bur. 2001), Forfeiture Order, 18 FCC Rcd 26065 (Enf. Bur. 2003).

[^69]: 47 U.S.C. § 503(b)(1)(B); *see also* 47 C.F.R. § 1.80(a)(2).

[^70]: 47 U.S.C. § 503(b)(2)(B); *see also* 47 C.F.R. § 1.80(b)(2).

[^71]: 47 U.S.C. § 503(b)(2)(D); *see also Commission\'s Forfeiture
    Policy Statement and Amendment of Section 1.80 of the Rules to
    Incorporate the Forfeiture Guidelines*, Report and Order, 12 FCC Rcd
    17087, 17100, ¶ 27 (1997) ("*Forfeiture Policy Statement*"); recon.
    denied 15 FCC Rcd 303 (1999); 47 C.F.R. § 1.80(b).

[^72]: 47 U.S.C. § 503(b)(6)(B); 47 C.F.R. § 1.80(c)(3). Effective
    September 7, 2004, the Commission amended its rules to increase the
    maximum penalties to account for inflation since the last adjustment
    of the penalty rates*. See Amendment of Section 1.90 of the
    Commission's Rules*, Order, 19 FCC Rcd 10945, 10946 ¶ 6 (2004).

[^73]: *See, e.g., Globcom,* 18 FCC Rcd at 19903; *Roadrunner Transp.,
    Inc.,* Forfeiture Order, 15 FCC Rcd 9669, 9671 (2000); *Liab. of E.
    Broad. Corp.*, Memorandum Opinion and Order, 10 F.C.C. 2d 37 (1967).

[^74]: In the *Globcom NAL*, the Commission proposed a \$50,000
    forfeiture for each instance within the statute of limitations that
    Globcom failed to file a required Worksheet. *Globcom,* 18 FCC Rcd
    at 19905.

[^75]: *See* 47 U.S.C. § 254(d).

[^76]: *See Globcom,* 18 FCC Rcd at 19903-19904, ¶¶ 25-27.

[^77]: *See, e.g., id*.

[^78]: Carrera made its late TRS program payment only after receiving
    two LOIs from the Commission specifically inquiring into its
    compliance with the payment requirement and multiple collection
    demands from the TRS Administrator. Commission precedent is clear
    that subsequent remedial measures do not cure a violation for
    enforcement purposes. *See supra* note 45.

[^79]: 47 U.S.C. § 225(b)(1).

[^80]: *See Globcom,* 18 FCC Rcd at 19904, ¶ 29.

[^81]: *See id.*

[^82]: *See* "FY 2004 Regulatory Fees Due No Later Than August 19,
    2004," *Public Notice*, (rel. Jul. 2, 2004).

[^83]: For example, the 2004 TRS Fund contribution factor was .00356 per
    dollar of interstate and international end-user revenue and the 2004
    interstate telecommunications regulatory fee assessment was .00218
    per dollar of interstate and international end-user revenue. *See
    Telecommunications Relay Services and Speech-to-Speech Services for
    Individuals with Hearing and Speech Disabilities*, Order, 19 FCC Rcd
    12224, 12225 (Con. & Gov. Aff. Bur. 2004); *Assessment and
    Collection of Regulatory Fees for Fiscal Year 2004*, 19 FCC Rcd at
    11691.

[^84]: *See* *supra* ¶ 22.

[^85]: 47 C.F.R. § 1.80; *Forfeiture Policy Statement*, 12 FCC Rcd at
    17114.

[^86]: *See, e.g., WCSS Forfeiture Order*, 18 FCC Rcd at 18545
    (proposing a monetary forfeiture of \$10,000 against regulatee for
    submitting a jurisdictional objection rather than a substantive
    response to a Bureau LOI); *SBC Forfeiture Order*, 17 FCC Rcd at
    7600, ¶ 28 (issuing a monetary forfeiture of \$100,000 against SBC
    for violating an order to submit a sworn statement with its response
    to a Bureau LOI).

[^87]: 47 U.S.C § 503(b)(6).

[^88]: *BigZoo.com Corp*, Order of Forfeiture, DA 05-449, (Enf. Bur.
    Rel. Feb. 23, 2005).

[^89]: *See* *BigZoo*.*com Corp.,* 19 FCC Rcd at 24437-38.

[^90]: *Forfeiture Policy Statement*, 12 FCC Rcd at 17099; *see also* 47
    C.F.R. § 1.80(b)(4).

[^91]: *See Business Options, Inc.,* Consent Decree, 19 FCC Rcd 2916
    (2003); *NOS Communications, Inc., Affinity Network Incorporated and
    NOSVA Limited Partnership,* Consent Decree, 2003 WL 22439710 (2003).

[^92]: 47 C.F.R. § 1.1910. The rule went into effect on November 1,
    2004. *See* "FCC Announces Brief Delay in Enforcement of Red Light
    Rule," *Public Notice,* 19 FCC Rcd 19452 (2004).

[^93]: *See* 47 C.F.R. § 1.1914.