FCC Issues $662,541 Fine!
ADMA Telecom, Inc. a Florida-based company which provides prepaid international calling cards was issued a Forfeiture Order and assessed a fine in for $662,541 for various violations. No, that is not a typo! In the initial Notice of Appear ant Liability for Forfeiture (NAL), ADMA was cited for failing to comply with the Commission’s registration requirement and “contribution and revenue filing requirements” from 2001 to August 2006. ADMA was also held liable for providing certain international services without obtaining appropriate authorization.
In its response to the FCC, ADMA argued that its revenue in 2006 qualified them as exempt; that they should not be penalized for certain unpaid contributions because the invoice was sent to the wrong address, and that certain parts of the forfeiture were outside the applicable statute of limitations. The Commission conceded on one account, ADMA’s failure to make timely contributions, and charitably reduced the forfeiture from $672,541 to $662,541.
Third Party Advisors Won’t Pay Your Fine
In a Notice of Apparent Liability for Forfeiture, Shubat Transportation Company (Shubat) was fined $19,000 for failing to renew its license in a timely manner and for continuing operations for seven years after the expiration of their former license. Shubat admitted that it became aware that its license had expired but took no action until March 2010 noting “staff did not have knowledge of FCC requirements/procedures.” Shubat relied on a service company to file a Special Temporary Authority in March of 2010, which reported that their license had expired six years earlier and that they needed an extension to continue radio operations while they applied for a new license. The Commission emphasized that licensees are responsible for the terms of their license agreement with the FCC, and it further noted that licensees will be held accountable for the acts or omissions of its agents.
Category: Enforcement CornerProgramming Unauthorized Radio Equipment
EWA has reported this form of enforcement action before. Universal Technologies LTD (Universal) was issued a Citation for programming radio transmitting equipment for the Montgomery Mall in North Wales, Pennsylvania for which the Mall was not authorized. The Commission’s rules state that “except for frequencies used in accordance with § 90.417, no person shall program into a transmitter frequencies for which the licensee using the transmitter is not authorized.” Universal was given thirty days to respond to the Citation or face the potential for monetary forfeitures up to $16,000 for each such violation.”
Category: Enforcement CornerAT&T + T-Mobile
The AT&T acquisition of T-Mobile USA made the headlines of nearly every newspaper, tech blog and Twitter account in the nation this week. AT&T’s $39 billion investment would make them the largest carrier, with 120 million customers (surpassing Verizon Wireless’ 102 million), but approval will take time as AT&T addresses regulatory requirements with FCC and Department of Justice reviews and certainly congressional hearings. It has been reported that such reviews will of course incorporate the transaction’s potential impact on consumers and the general industry landscape. Eventually, approval may require significant divestiture of wireless license and additional concessions that would further the Administration’s universal broadband objectives.
Category:More Spectrum for Large Carriers Consumer-Friendly?
In case someone wanted to convince federal regulators of the dangers of large companies getting even larger, a non-partisan pro-consumer group recently issued results from a study it conducted supporting the notion that more spectrum for larger carriers is not necessarily consumer-friendly. The Phoenix Center’s Economic Framework for Rational Allocation of Spectrum concluded that consumers are “better off with more quality competition from new advanced broadband services made possible only with big blocks of spectrum.” One of the primary factors influencing the study’s conclusions is the point that “access to spectrum resources does not necessarily convey financial success, as spectrum is but one of many inputs necessary to provide service.” Surprisingly, the study did point out there was little impact on price. In a quirk of timing, AT&T’s proposed purchase of T-Mobile USA was announced less than one week later.
Category:700 MHz Band Auction Scheduled
The anticipated auction of 16 licenses in the 698-806 MHz band is one step closer to reality with the FCC’s announcement of participation procedures and an auction start date of July 19, 2011. Auction 92 is targeted to sell licenses that were unsold from Auction 73, and those licenses on which a winning bidder defaulted on auction payments.
FCC Public Notice DA 11-420
The Date Remains the Same!
There have been no changes to the mandatory 150-512 MHz narrowbanding date, and none are anticipated. As reported by Urgent Communications, FCC staff attorney Roberto Mussenden stated during a recent IWCE session, that the agency is prepared to take enforcement action against licensees that do not comply. To the assumption that licensees could avoid narrowbanding by agreeing to operate their systems on a secondary basis, Mussenden responded “That would be operating in violation of your license. It’s not secondary, it’s illegal.” Please contact EWA if your licenses or those of your customers could use a narrowbanding compliance review.
Category: In the newsCity Raises 700 MHz Public Safety Eligibility
Last week, The City of Charlotte, North Carolina asked the FCC to clarify who and for what purpose may public safety entities access 700 MHz public safety broadband spectrum. Specifically, the City asked is the spectrum use determined by the type of entity using the spectrum or by the type of usage? The City of Charlotte suggested that the Communications Act and FCC decisions support the view that the spectrum usage should be based on who the user is, e.g., state and local governments, and not be limited to the purpose of the spectrum usage, e.g., police, fire, and EMS service applications. It’s interesting that the City felt compelled to ask for clarification in the first place, and further that the FCC thought it necessary to seek public comment on this policy question. One would think that public safety is not limited to critical police, fire and emergency medical activities. FCC Public Notice DA 11-537
Category: In the newsChanges to the FCC’s License Cancellation Policy?
Maybe it was because the incumbent failed to respond to a formal FCC inquiry, or perhaps it is potentially due to a renewed interest on the part of the FCC in enforcing its permanent discontinuance” rules, but this story should be of extreme interest to many EWA members who might have just walked away.
When Telecom Communications based in Plainview, New York discovered that a license issued nine years earlier to RF Data was not on the air, they conducted a little due diligence. They contacted the tower owner who confirmed that there was no transmitter installed at their site on the purported frequencies. Correspondence requesting that the license be cancelled was then submitted to the FCC’s Wireless Telecommunications Bureau by Telecom Communications. In response, WTB’s Mobility Division sent a letter to RF Data requesting that they provide within 30 days information concerning the operational status of call sign WPVS899. RF Data did not respond.
FCC Rule 90.157(a) provides that a private land mobile radio station cancels automatically upon discontinuance of operation for a period of one year or more. Based on the evidence provided and certainly due to RF Data’s failure to respond to the FCC, WPVS899 was cancelled with the ULS due to “permanent discontinuance” of service. The frequencies associated with the call sign are now available for reassignment. FCC Order DA 11-508
Repurposing the TV Bands – Recognize Incumbents
In Comments filed March 18 , the Land Mobile Communications Council (LMCC) advised the Commission that it “must not lose sight of very significant investments that have been made in non-broadband communications equipment and applications that are being used in the effective operation of public safety, critical infrastructure and other business activities, including in bands under consideration in this proceeding. The 470-512 MHz band is essential to organizations that serve the public interest directly through public safety and service activities, as well as those whose operations are fundamental to the economic well-being of the nation.” The LMCC also urged the FCC “to recognize the vital role played by this band and not to include it in whatever decisions it reaches with regard to the repurposing of other television broadcast spectrum”.
What was particularly disconcerting to the LMCC was the fact that mention of the industry’s long term use of this critical band seemed an afterthought on the part of the Commission. In a footnote, the FCC noted that it “would address appropriate changes for the Private Land Mobile Service…in the event that we were to decide to recover spectrum now used by those services.”
The comments were in response to the FCC’s Notice of Proposed Rulemaking in ET Docket No. 10-235, entitled “Innovation in the Broadcast Television Bands: Allocations, Channel Sharing and Improvements to VHF”.