*Pages 1--4 from  Microsoft Word - 60621.doc*
 Federal  Communications  Commission 
 Before  the  Federal  Communications  Commission 
 Washington,  D.  C.  20554 
 In  the  Matter  of 
 Carnival  Cruise  Lines  Inc.  San  Juan,  Puerto  Rico 
 )  ) 
 )  ) 
 ) 


 File  Number:  EB-  06-  SJ-  024 
 NAL/  Acct.  No.  200632680007 
 FRN  0015642390 


 NOTICE  OF  APPARENT  LIABILITY  FOR  FORFEITURE 
 Released:  October  24,  2006 


 By  the  Resident  Agent,  San  Juan  Field  Office,  South  Central  Region,  Enforcement  Bureau: 
 I.  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). 
 II.  BACKGROUND 
 2.  In  response  to  a  complaint  of  interference,  on  May  8,  2006,  an  agent  from  the  Commissions  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  Commissions  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 


 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  Commissions  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.  Carnivals  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. 
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 Federal  Communications  Commission 
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 transmitted  from  the  Destiny  could  be  clearly  received  from  at  least  700  feet  from  the  ship.  5  A  search  of  the  Commissions  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  Commissions  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  Elations  Electrical  Officer.  The  tests  showed  that  the  interfering  signals  were  generated  by  the  ships  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  Elations  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  Carnivals  ships  used  the  same  system.  He  was  warned  that  unlicensed 
 operation  of  the  ships  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 
 Commissions  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  Commissions  databases  revealed  no  authorization  for  the  Carnival  Destiny  to  operate  in  these  frequencies  in  the  United  States  and  its  territories. 


 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. 
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 Federal  Communications  Commission 
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 III.  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  Commissions  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 
 IV.  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 


 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). 
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 Federal  Communications  Commission 
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 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  petitioners  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 


 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. 
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