# Before the

# Federal Communications Commission

# Washington, D.C. 20554

+--------------------------------+-------+-----------------------------+
| In the Matter of               | )     | File No. EB-04-IH-0652      |
|                                |       |                             |
| United Networks International, | )     | Acct. No. 200632080006      |
| Inc.                           |       |                             |
|                                | )     | FRN No. 0011-1796-03        |
|                                |       |                             |
|                                | )     |                             |
|                                |       |                             |
|                                | )     |                             |
+--------------------------------+-------+-----------------------------+

# ORDER

**Adopted: December 8, 2005 Released: December 9, 2005**

By the Chief, Enforcement Bureau:

1.  In this *Order*, we adopt the attached Consent Decree entered into
    between the Enforcement Bureau and United Networks International,
    Inc. ("UNI"). The Consent Decree terminates the enforcement
    proceeding initiated by the Enforcement Bureau against UNI for
    possible violations of section 254 of the Communications Act of
    1934, as amended ("the Act"),[^1] relating to universal service, and
    sections 1.1157, 52.17, 54.706, 54.711, 64.604, and 64.1195 of the
    Commission rules relating to universal service, the
    Telecommunications Relay Service Fund, the North American Numbering
    Plan Administration, and regulatory fees.[^2]

2.  The Enforcement Bureau and UNI have negotiated the terms of a
    Consent Decree that resolves this matter. A copy of the Consent
    Decree is attached hereto and incorporated by reference.

3.  Based on the record before us, and in the absence of material new
    evidence relating to this matter, we conclude that are no
    substantial or material questions of fact as to whether UNI
    possesses the basic qualifications, including those related to
    character, to hold or obtain any Commission license or
    authorization.

4.  After reviewing the terms of the Consent Decree, we find that the
    public interest will be served by adopting the Consent Decree.

5.  Accordingly, **IT IS ORDERED** that, pursuant to section 4(i) of the
    Communications Act of 1934, as amended,[^3] and sections 0.111 and
    0.311 of the Commission's rules,[^4] the Consent Decree attached to
    this Order **IS ADOPTED**.

6.  **IT IS FURTHER ORDERED** that the above-captioned investigation
    **IS TERMINATED.**

FEDERAL COMMUNICATIONS COMMISSION

Kris Anne Monteith

Chief, Enforcement Bureau

**Before the**

**Federal Communications Commission**

**Washington, DC 20554**

+--------------------------------+-------+-----------------------------+
| In the Matter of               | )     | File No. EB-04-IH-0652      |
|                                |       |                             |
| United Networks International, | )     | Acct. No. 200632080006      |
| Inc.                           |       |                             |
|                                | )     | FRN No. 0011-1796-03        |
|                                |       |                             |
|                                | )     |                             |
|                                |       |                             |
|                                | )     |                             |
+--------------------------------+-------+-----------------------------+

**CONSENT DECREE**

1.  The Enforcement Bureau ("Bureau") of the Federal Communications
    Commission ("Commission") and United Networks International, Inc.
    ("UNI" or the "Company") hereby enter into this *Consent Decree* for
    the purpose of terminating the Bureau's investigation into whether
    UNI violated section 254 of the Communications Act of 1934, as
    amended (the "Act"),[^5] relating to universal service, and/or
    certain Commission rules relating to universal service, the
    Telecommunications Relay Service ("TRS") Fund, the North American
    Numbering Plan Administration ("NANPA"), and regulatory fees.

2.  For the purposes of this Consent Decree, the following definitions
    shall apply:

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(a) "Commission" and "FCC" mean the Federal Communications Commission.

(b) "Bureau" means the Enforcement Bureau of the Federal Communications
    Commission.

(c) "UNI" means United Networks International, Inc. and its
    predecessors-in-interest and successors-in-interest.

(d) "Parties" means UNI and the Bureau.

(e) "Order" or "Adopting Order" means an Order of the Commission or the
    Bureau adopting the terms of this Consent Decree without change,
    addition, deletion, or modification.

(f) "Effective Date" means the date on which the Commission or the
    Bureau releases the Adopting Order.

(g) "Investigation" means the investigation commenced by the Bureau's
    January 26, 2005 Letter of Inquiry[^6] regarding whether UNI
    violated the requirements of section 254 of the Act and/or
    sections 1.1157, 52.17, 54.706, 54.711, 64.604 and 64.1195 of the
    Commission's rules relating to carrier registration, universal
    service reporting and contribution, number
    administration, telecommunications relay systems and regulatory fee
    payments.

**I. BACKGROUND**

3.  Pursuant to section 64.1195(a) of the Commission's rules, all
    carriers that provide interstate telecommunications service must
    register with the Commission through submission of FCC Form
    499-A.[^7] In addition, pursuant to section 254(d) of the Act and
    sections 54.706(a) and 54.711(a) of the Commission's rules,
    telecommunications carriers that provide interstate
    telecommunications services and private service providers that
    provide interstate telecommunications services are required to file
    annual and quarterly Telecommunications Reporting Worksheets (FCC
    Forms 499-A and 499-Q) and contribute to the Universal Service
    Fund.[^8]

4.  Section 225(b)(1) of the Act[^9] codifies Title IV of the Americans
    with Disabilities Act of 1990. In support of that Act, section
    64.604 of the Commission's rules requires every carrier that
    provides interstate telecommunications services to file
    Telecommunications Reporting Worksheets and contribute to the TRS
    Fund based upon its interstate and international end-user
    revenues.[^10]

5.  Section 251(e)(1) of the Act directs the Commission to ensure the
    availability of telephone numbers on an equitable basis.[^11] To
    this end, section 52.17 of the Commission's rules requires that all
    telecommunications carriers file Telecommunications Reporting
    Worksheets and contribute toward the costs of numbering
    administration on the basis of their end-user telecommunications
    revenues for the prior calendar year.[^12]

6.  Pursuant to section 9(a)(1) of the Act and section 1.1151 of the
    Commission's rules, interstate telecommunications and other
    providers must pay regulatory fees to the Commission to recover the
    costs of certain regulatory activities.[^13] 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.[^14]

7.  UNI is a provider of intrastate and interstate long distance
    services located in American Fork, Utah, serving approximately 160
    customers. On January 26, 2005, the Bureau issued a Letter of
    Inquiry ("LOI") directing UNI to provide information about its
    compliance with the Commission's registration requirements and
    reporting and contribution requirements involving the Universal
    Service Fund, the TRS Fund, and the NANPA Fund. UNI submitted a
    response to the Bureau's LOI on March 20, 2005.[^15] In September
    and October, 2005, UNI submitted supplemental information.

**II. AGREEMENT**

8.  The Parties agree that the provisions of this Consent Decree shall
    be subject to final approval by the Bureau, through entry of the
    Order, which shall immediately resolve and terminate the
    Investigation.

9.  The Parties agree that this Consent Decree does not constitute
    either an adjudication on the merits or a factual or legal finding
    or determination regarding any compliance or noncompliance with the
    requirements of the Act or the Commission's rules and orders. The
    Parties agree that this Consent Decree is for settlement purposes
    only and that by agreeing to this Consent Decree, UNI does not admit
    or deny liability for violating any statute, regulation, or
    administrative rule in connection with matters that are the subject
    of this Consent Decree.

10. UNI agrees that it will make a voluntary contribution to the United
    States Treasury in the amount of \$15,000, in five equal
    installments of \$3,000 each paid over a five-month period, with the
    first payment due 30 days after the Effective Date and each of the
    four successive payments due 30 days after the previous payment. The
    payment must be made by check or similar instrument, payable to the
    order of the Federal Communications Commission. The payment must
    include "Acct. No. 200632080006" and "FRN No. 0011-1796-03." 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.

11. For purposes of settling the matters set forth herein, UNI agrees to
    maintain a compliance program related to future compliance with the
    Act, the Commission's rules, and the Commission's orders. The
    program will include, at a minimum, the following components:

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(a) **Compliance Manual**. The Company shall create, maintain and update
    an FCC Compliance Manual. Company personnel shall have ready access
    to the Compliance Manual and are to follow the procedures contained
    in it. The Compliance Manual will, among other things, describe the
    regulatory fee, universal service, Telecommunications Relay Service
    and North American Numbering Plan Administration rules and
    requirements as they apply to UNI. The Compliance Manual will set
    forth a schedule of filing and payment dates associated with these
    regulatory programs, and UNI will create compliance notifications
    that alert the Company to upcoming filing and payment dates. The
    Company shall submit to the Bureau a final version of its Compliance
    Manual 30 days after the Effective Date.

(b) **Compliance Training Program**. The Company will establish an FCC
    Compliance Training Program for employees who engage in activities
    subject to FCC regulation. Training sessions will be conducted for
    new employees within the first 30 days of employment.

(c) **Review and Monitoring**. The Company will review the FCC
    Compliance Manual and FCC Compliance Training Program annually to
    ensure that they are maintained in a proper manner and continue to
    address the objectives set forth therein.

(d) **Company Software Redesign**. Within 90 days of the Effective Date,
    the Company will modify the software it utilizes to maintain
    financial data so that it can break out the financial details into
    the components required for FCC filings.

(e) **Termination**. UNI's obligation under this Paragraph 11 shall
    expire 24 months after the Effective Date.

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12. The Bureau agrees that it will not use the facts developed in this
    Investigation through the Effective Date of the Consent Decree, or
    the existence of this Consent Decree to institute, on its own
    motion, any new proceeding, formal or informal, or take any action
    on its own motion against UNI concerning the matters that were the
    subject of the Investigation. The Bureau also agrees that it will
    not use the facts developed in this Investigation through the
    Effective Date of this Consent Decree, or the existence of this
    Consent Decree to institute on its own motion any proceeding, formal
    or informal, or take any action on its own motion against UNI with
    respect to UNI's basic qualifications, including its character
    qualifications, to be a Commission licensee or authorized common
    carrier.

13. Nothing in this Consent Decree shall prevent the Commission or its
    delegated authority from adjudicating complaints filed pursuant to
    section 208 of the Act against UNI or its affiliates for alleged
    violations of the Act, or for any other type of alleged misconduct,
    regardless of when such misconduct took place. The Commission's
    adjudication of any such complaint will be based solely on the
    record developed in that proceeding. Except as expressly provided in
    this Consent Decree, this Consent Decree shall not prevent the
    Commission from investigating new evidence of noncompliance by UNI
    of the Act, the rules, or the Order.

14. UNI waives any and all rights it may have to seek administrative or
    judicial reconsideration, review, appeal or stay, or to otherwise
    challenge or contest the validity of this Consent Degree and the
    Order adopting this Consent Decree, provided the Bureau issues an
    Order adopting the Consent Decree without change, addition,
    modification, or deletion. UNI shall retain the right to challenge
    Commission interpretation of the Consent Decree or any terms
    contained herein.

15. UNI's decision to enter into this Consent Decree is expressly
    contingent upon the Bureau's issuance of an Order that is consistent
    with this Consent Decree, and which adopts the Consent Decree
    without change, addition, modification, or deletion.

16. In the event that this Consent Decree is rendered invalid by any
    court of competent jurisdiction, it shall become null and void and
    may not be used in any manner in any legal proceeding.

17. If either Party (or the United States on behalf of the Commission)
    brings a judicial action to enforce the terms of the Adopting Order,
    neither UNI nor the Commission shall contest the validity of the
    Consent Decree or the Adopting Order, and UNI shall waive any
    statutory right to a trial *de novo*.

18. Any violation of the Consent Decree or the Adopting Order will
    constitute a separate violation of a Commission order, entitling the
    Commission to exercise any rights or remedies authorized by law
    attendant to the enforcement of a Commission order.

19. The Parties also agree that if any provision of the Consent Decree
    conflicts with any subsequent rule or order adopted by the
    Commission (except an order specifically intended to revise the
    terms of this Consent Decree to which UNI does not expressly
    consent) that provision will be superseded by such Commission rule
    or order.

20. UNI hereby agrees to waive any claims it may otherwise have under
    the Equal Access to Justice Act, 5 U.S.C. § 504 and 47 C.F.R. §
    1.1501 *et seq*., relating to the matters addressed in this Consent
    Decree.

21. This Consent Decree may be signed in counterparts.

+-----------------------------------+-----------------------------------+
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\   |                                   |
| _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ |                                   |
|                                   |                                   |
| Kris Anne Monteith                |                                   |
|                                   |                                   |
| Chief, Enforcement Bureau         |                                   |
|                                   |                                   |
| Federal Communications Commission |                                   |
|                                   |                                   |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\   |                                   |
| _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ |                                   |
|                                   |                                   |
| Date                              |                                   |
|                                   |                                   |
| **                                |                                   |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\ |                                   |
| _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** |                                   |
|                                   |                                   |
| Preston Stewart                   |                                   |
|                                   |                                   |
| President                         |                                   |
|                                   |                                   |
| United Networks International,    |                                   |
| Inc.                              |                                   |
|                                   |                                   |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\   |                                   |
| _\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ |                                   |
|                                   |                                   |
| Date                              |                                   |
+-----------------------------------+-----------------------------------+

[^1]: 47 U.S.C. § 254.

[^2]: 47 C.F.R. §§ 1.1157, 52.17, 54.706, 54.711, 64.604, 64.1195.

[^3]: 47 U.S.C. § 154(i).

[^4]: 47 C.F.R. §§ 0.111, 0.311.

[^5]: 47 U.S.C. § 254.

[^6]: *See* Letter from Hillary S. DeNigro, Deputy Chief, Investigations
    and Hearings Division, Enforcement Bureau, FCC to Preston Stewart,
    President, United Networks international, Inc. (January 26, 2005).

[^7]: 47 C.F.R. § 64.1195(a).

[^8]: 47 U.S.C. § 254(d); 47 C.F.R. §§ 54.706(a), 54.711(a).

[^9]: 47 U.S.C. § 225(b)(1).

[^10]: 47 C.F.R. § 64.604(c)(5)(iii)(A).

[^11]: 47 U.S.C. § 251(e)(1).

[^12]: 47 C.F.R. § 52.17(a).

[^13]: 47 U.S.C. § 159(a)(1); *see also* 47 C.F.R. § 1.1151.

[^14]: *See* 47 C.F.R. §§ 1.1154, 1.1157(b)(1).

[^15]: *See* Letter from Preston Stewart, President, United Networks
    International, Inc., to David Janas, Special Counsel, Investigations
    and Hearings Division, Enforcement Bureau (March 20, 2005).