**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+---------------------------------+
| In the Matter of                 | ) | File Number: EB-06-SJ-024       |
|                                  |   |                                 |
| Carnival Cruise Lines Inc.       | ) | NAL/Acct. No. 200732680001      |
|                                  |   |                                 |
| San Juan, Puerto Rico            | ) | FRN 0015642390                  |
|                                  |   |                                 |
|                                  | ) |                                 |
|                                  |   |                                 |
|                                  | ) |                                 |
+----------------------------------+---+---------------------------------+

## NOTICE OF APPARENT LIABILITY FOR FORFEITURE {#notice-of-apparent-liability-for-forfeiture .unnumbered}

> **Released: October 24, 2006**

By the Resident Agent, San Juan Field Office, South Central Region,
Enforcement Bureau:

# INTRODUCTION

1.  In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
    that Carnival Cruise Lines ("Carnival") apparently willfully and
    repeatedly violated Section 301 of the Communications Act of 1934,
    as amended ("Act"),[^1] by operating unlicensed radio transmitters.
    We conclude, pursuant to Section 503(b) of the Act,[^2] that
    Carnival is apparently liable for a forfeiture in the amount of
    twenty thousand dollars (\$20,000).

# BACKGROUND

2.  In response to a complaint of interference, on May 8, 2006, an agent
    from the Commission's San Juan Office of the Enforcement Bureau
    ("San Juan Office") monitored radio transmissions on the PCS F Block
    band (1.890 GHz to 1.895 GHz) at the San Juan, Puerto Rico
    waterfront. The agent, using direction finding techniques, located
    the source of the transmissions to the Carnival cruise ship Triumph
    docked at the San Juan harbor. The signals transmitted from the
    Triumph could be clearly received from at least 300 feet from the
    ship.[^3] A search of the Commission's databases revealed no
    authorization for the Carnival Triumph to operate on these
    frequencies in the United States and its territories.[^4]

3.  On June 18, 2006, an agent from the San Juan Office monitored radio
    transmissions on the PCS F Block band at the San Juan waterfront.
    The agent, using direction finding techniques, located the source of
    the transmissions to the Carnival cruise ship Destiny docked at the
    San Juan harbor. The signals transmitted from the Destiny could be
    clearly received from at least 700 feet from the ship.[^5] A search
    of the Commission's databases revealed no authorization for the
    Carnival Destiny to operate on these frequencies in the United
    States and its territories.

4.  On June 22, 2006, an agent from the San Juan Office monitored radio
    transmissions on the PCS F Block band at the San Juan waterfront.
    The agent, using direction finding techniques, located the source of
    the transmissions to the Carnival cruise ship Elation docked at the
    San Juan harbor. The signals transmitted from the Elation could be
    clearly received from at least 700 feet from the ship.[^6] A search
    of the Commission's databases revealed no authorization for the
    Carnival Elation to operate on these frequencies in the United
    States and its territories. The agent was invited to board the
    Elation, where he was able to run tests with the Elation's
    Electrical Officer. The tests showed that the interfering signals
    were generated by the ship's internal Cellular System.[^7] The
    Cellular System consisted of over one hundred hand sets and a mobile
    telephone system.[^8] At the time of the inspection, the Elation's
    Electrical Officer could not produce a license to operate a Cellular
    System or these transmitters in the United States and its
    territories. He also stated that the system had been installed on
    the Elation about two years ago. He mentioned that most of
    Carnival's ships used the same system. He was warned that unlicensed
    operation of the ship's internal Cellular System in the United
    States and its territories violated Section 301 of the Act, that
    operation of the Cellular System was creating interference, and that
    operations should cease.

5.  On September 14, 2006, an agent from the San Juan Office monitored
    radio transmissions on the PCS F Block band at the San Juan
    waterfront. The agent, using direction finding techniques, again
    located the source of the transmissions to the docked Carnival
    cruise ship Elation. The signals transmitted from the Elation could
    be clearly received from at least 778 feet from the ship.[^9] A
    search of the Commission's databases revealed no authorization for
    the Carnival Elation to operate in these frequencies in the United
    States and its territories.

6.  On September 17, 2006, an agent from the San Juan Office monitored
    radio transmissions on the PCS F Block band at the San Juan
    waterfront. The agent, using direction finding techniques, again
    located the source of the transmissions to the docked Carnival
    cruise ship Destiny. The signals transmitted from the Destiny could
    be clearly received from at least 778 feet from the ship.[^10] A
    search of the Commission's databases revealed no authorization for
    the Carnival Destiny to operate in these frequencies in the United
    States and its territories.

# DISCUSSION

7.  Section 503(b) of the Act provides that any person who willfully or
    repeatedly fails to comply substantially with the terms and
    conditions of any license, or willfully or repeatedly fails to
    comply with any of the provisions of the Act or of any rule,
    regulation or order issued by the Commission thereunder, shall be
    liable for a forfeiture penalty. The term "willful" as used in
    Section 503(b) has been interpreted to mean simply that the acts or
    omissions are committed knowingly.[^11] The term "repeated" means
    the commission or omission of such act more than once or for more
    than one day.[^12]

8.  Section 301 of the Act requires that no person shall use or operate
    any apparatus for the transmission of energy or communications or
    signals by radio within the United States except under and in
    accordance with the Act and with a license.[^13] The Act
    specifically defines within the United States as transmissions or
    communications from one place within a Territory: to another place
    in the same Territory; to another State, Territory or possession of
    the United States; or to any place in a foreign country or to any
    vessel. Agents, using direction finding techniques, determined that
    Carnival operated radio transmitters on PCS F Block frequencies
    without a license from various cruise ships while docked at the San
    Juan harbor on May 8, June 18 and 22, September 14, and 17, 2006. On
    June 22, 2006, Carnival was warned orally that operation of a radio
    station without a license violates the Rules and the Act and that
    its operation was causing harmful interference. Based on the
    evidence before us, we find that Carnival apparently willfully and
    repeatedly violated Section 301 of the Act by operating radio
    transmission apparatus without a license on May 8, June 18, June 22,
    and September 14, and 17, 2006.

9.  Pursuant to *The Commission's Forfeiture Policy Statement and
    Amendment of Section 1.80 of the Rules to Incorporate the Forfeiture
    Guidelines*, ("*Forfeiture Policy Statement*") and Section 1.80 of
    the Rules, the base forfeiture amount for operation without an
    instrument of authorization is \$10,000.[^14] In assessing the
    monetary forfeiture amount, we must also take into account the
    statutory factors set forth in Section 503(b)(2)(D) of the Act,
    which include 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
    other such matters as justice may require.[^15] Given the number of
    handsets in use on each cruise ship, the repeated nature of the
    violations despite an oral warning, and the commercial application
    for the unlicensed activity, we believe it appropriate to increase
    the forfeiture amount above the base forfeiture. Applying the
    *Forfeiture Policy Statement*, Section 1.80, and the statutory
    factors to the instant case, we conclude that Carnival is apparently
    liable for a \$20,000 forfeiture

# ORDERING CLAUSES

10. Accordingly, **IT IS ORDERED** that, pursuant to Section 503(b) of
    the Communications Act of 1934, as amended, and Sections 0.111,
    0.311 and 1.80 of the Commission\'s Rules, Carnival Cruise Lines is
    hereby **NOTIFIED** of this **APPARENT LIABILITY FOR A**
    **FORFEITURE** in the amount of twenty thousand dollars (\$20,000)
    for violations of Section 301 of the Act.[^16]

11. **IT IS FURTHER ORDERED** that, pursuant to Section 1.80 of the
    Commission\'s Rules within thirty days of the release date of this
    Notice of Apparent Liability for Forfeiture, Carnival Cruise Lines
    **SHALL PAY** the full amount of the proposed forfeiture or **SHALL
    FILE** a written statement seeking reduction or cancellation of the
    proposed forfeiture.

12. 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.

13. The response, if any, must be mailed to Federal Communications
    Commission, Enforcement Bureau, South Central Region, San Juan Field
    Office, Room 762, Federal Building, San Juan, Puerto Rico 00918, and
    must include the NAL/Acct. No. referenced in the caption.

14. 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.

15. Requests for payment of the full amount of this Notice of Apparent
    Liability for Forfeiture under an installment plan should be sent
    to: Associate Managing Director -- Financial Operations, Room 1A625,
    445 12th Street, S.W., Washington, D.C. 20554.[^17]

16. **IT IS FURTHER ORDERED** that a copy of this Notice of Apparent
    Liability for Forfeiture shall be sent by Certified Mail, Return
    Receipt Requested, and regular mail, to Carnival Cruise Lines, San
    Juan, Puerto Rico.

**FEDERAL COMMUNICATIONS COMMISSION**

William Berry

Resident Agent

San Juan Field Office

South Central Region

Enforcement Bureau

[^1]: 47 U.S.C. § 301.

[^2]: 47 U.S.C. § 503(b).

[^3]: The agent measured the relative signal strength of the
    transmissions from the Triumph to be 15 dB above the noise floor at
    a location at least 300 feet from the transmitters.

[^4]: Section 15.1(b) of the Commission's Rules ("Rules") states that
    the operation of an intentional or unintentional radiator that is
    not in accordance with the regulations in this part must be
    licensed. 47 C.F.R. § 15.1(b). Section 15.5(b) states that
    intentional radiators operating under Part 15 must not cause any
    harmful interference to licensed users. Carnival's operation of its
    transmitters caused harmful interference to the licensee of the PCS
    F Block band. Therefore, it can not operate these transmitters as
    non-licensed intentional radiators pursuant to Part 15.

[^5]: The agent measured the relative signal strength of the
    transmissions from the Destiny to be 15 dB above the noise floor at
    a location at least 700 feet from the transmitters.

[^6]: The agent measured the relative signal strength of the
    transmissions from the Elation to be 15 dB above the noise floor at
    a location at least 700 feet from the transmitters.

[^7]: Stations in the Public Mobile Services, including Cellular
    Services, must be operated only in accordance with a valid
    authorization issued by the Commission. 47 C.F.R. § 22.3.

[^8]: The resident agents found no evidence that the equipment was
    certified for use in the United States. Thus, even if Carnival did
    not cause harmful interference to a licensed user, it could not
    claim its operation fell under Part 15 of the Rules, because it was
    not using equipment certified for Part 15 use. *See* 47 C.F.R. §
    15.201(b).

[^9]: The agent measured the relative signal strength of the
    transmissions from the Elation to be 10 dB above the noise floor at
    a location at least 778 feet from the transmitters.

[^10]: The agent measured the relative signal strength of the
    transmissions from the Destiny to be 13 dB above the noise floor at
    a location at least 778 feet from the transmitters.

[^11]: Section 312(f)(1) of the Act, 47 U.S.C. § 312(f)(1), which
    applies to violations for which forfeitures are assessed under
    Section 503(b) of the Act, provides that "\[t\]he term \'willful\',
    when used with reference to the commission or omission of any act,
    means the conscious and deliberate commission or omission of such
    act, irrespective of any intent to violate any provision of this Act
    or any rule or regulation of the Commission authorized by this
    Act...." *See Southern California Broadcasting Co.*, 6 FCC Rcd 4387
    (1991).

[^12]: Section 312(f)(2) of the Act, 47 U.S.C. § 312(f)(2), which also
    applies to violations for which forfeitures are assessed under
    Section 503(b) of the Act, provides that "\[t\]he term \'repeated\',
    when used with reference to the commission or omission of any act,
    means the commission or omission of such act more than once or, if
    such commission or omission is continuous, for more than one day."

[^13]: 47 U.S.C. § 301.

[^14]: 12 FCC Rcd 17087 (1997), *recon. denied*, 15 FCC Rcd 303 (1999);
    47 C.F.R. §1.80.

[^15]: 47 U.S.C. § 503(b)(2)(D).

[^16]: 47 U.S.C. §§ 301, 503(b); 47 C.F.R. §§ 0.111, 0.311, 1.80.

[^17]: *See* 47 C.F.R. § 1.1914.