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Claro to pay $650K to resolve HAC Probe; To Adopt 3-Yr Compliance Plan

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Released: August 14, 2013
Federal Communications Commission

DA 13-1723

Before the

Federal Communications Commission

Washington, D.C. 20554

)
In the Matter of
)
File Nos.: EB-SED-13-00009248;
)
EB-SED-12-000034161
Puerto Rico Telephone Company, Inc. d/b/a
)
Claro
)
Acct. No.: 201332100015
)
)
FRN: 0001731470
)

ORDER

Adopted: August 13, 2013

Released: August 14, 2013
By the Acting Chief, Enforcement Bureau:
1.
In this Order, we adopt the attached Consent Decree entered into between the
Enforcement Bureau (Bureau) of the Federal Communications Commission (Commission) and Puerto
Rico Telephone Company, Inc. d/b/a Claro (Claro). The Consent Decree resolves and terminates the
Bureau's investigations into Claro's possible violations of Sections 20.19(c)(3) and 20.19(d)(3) of the
Commission's rules2 (Rules) pertaining to the deployment of digital wireless hearing aid-compatible
handset models.
2.
The Bureau and Claro have negotiated the Consent Decree that resolves these matters. A
copy of the Consent Decree is attached hereto and incorporated herein by reference.
3.
After reviewing the terms of the Consent Decree and evaluating the facts before us, we
find that the public interest would be served by adopting the Consent Decree and terminating the
investigations.
4.
In the absence of material new evidence relating to this matter, we conclude that our
investigations raise no substantial or material questions of fact as to whether Claro possesses the basic
qualifications, including those related to character, to hold or obtain any Commission license or
authorization.
5.
Accordingly,

IT IS ORDERED

that, pursuant to Sections 4(i), 4(j), and 503(b) of the
Communications Act of 1934, as amended,3 and Sections 0.111 and 0.311 of the Rules,4 the Consent
Decree attached to this Order

IS ADOPTED

.

1 The investigation initiated under File No. EB-10-SE-117 was subsequently assigned File No. EB-SED-13-
0009248.
2 47 C.F.R. 20.19(c)(3), (d)(3).
3 47 U.S.C. 154(i), 154(j), 503(b).
4 47 C.F.R. 0.111, 0.311.

Federal Communications Commission

DA 13-1723

6.

IT IS FURTHER ORDERED

that the above-captioned investigations

ARE

TERMINATED

.
7.

IT IS FURTHER ORDERED

that a copy of this Order and Consent Decree shall be
sent by first class mail and certified mail, return receipt requested, to Enrique Ortiz de Montellano,
President, Puerto Rico Telephone Company, Inc. d/b/a Claro, P.O. Box 360998, 1515 Roosevelt Avenue,
San Juan, PR 00936-0998 and to Nancy J. Victory, Esq., Wiley Rein LLP, Counsel for Puerto Rico
Telephone Company, Inc. d/b/a Claro, 1776 K Street N.W., Washington DC 20006.
FEDERAL COMMUNICATIONS COMMISSION
Robert H. Ratcliffe
Acting Chief, Enforcement Bureau
2

Federal Communications Commission

DA 13-1723

Before the

Federal Communications Commission

Washington, D.C. 20554

)
In the Matter of
)
File Nos.: EB-SED-13-00009248;
)
EB-SED-12-000034161
Puerto Rico Telephone Company, Inc. d/b/a
)
Claro
)
Acct. No.: 201332100015
)
)
FRN: 0001731470
)

CONSENT DECREE

The Enforcement Bureau of the Federal Communications Commission and Puerto Rico
Telephone Company, Inc. d/b/a Claro, by their authorized representatives, hereby enter into this Consent
Decree for the purpose of terminating the Enforcement Bureau's investigation into possible violations of
Sections 20.19(c)(3) and 20.19(d)(3) of the Commission's rules2 pertaining to the deployment of digital
wireless hearing aid-compatible handset models.

I.

DEFINITIONS

8.
For the purposes of this Consent Decree, the following definitions shall apply:
(a) "Act" means the Communications Act of 1934, as amended, 47 U.S.C. 151 et seq.
(b) "Adopting Order" means an order of the Bureau adopting the terms of this Consent
Decree without change, addition, deletion, or modification.
(c) "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
(d) "Claro" means Puerto Rico Telephone Company, Inc. d/b/a Claro and its
predecessors-in-interest and successors-in-interest.
(e) "Commission" and "FCC" mean the Federal Communications Commission and all of
its bureaus and offices.
(f) "Communications Laws" means collectively, the Act, the Rules, and the published
and promulgated orders and decisions of the Commission to which Claro is subject
by virtue of its business activities, including but not limited to, the Hearing Aid
Compatibility Rules.

1 The investigation initiated under File No. EB-10-SE-117 was subsequently assigned File No. EB-SED-13-
0009248.
2 47 C.F.R. 20.19(c)(3), (d)(3).

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DA 13-1723

(g) "Compliance Plan" means the compliance obligations, program, and procedures
described in this Consent Decree at paragraph 10.
(h) "Covered Employees" means all employees and agents of Claro who perform duties,
or who supervise, oversee, or manage the performance of duties, that relate to Claro's
responsibilities under the Hearing Aid Compatibility Rules.
(i) "Effective Date" means the date on which the Bureau releases the Adopting Order.
(j) "Hearing Aid Compatibility Rules" means Section 20.19 of the Rules and other
Communications Laws governing digital wireless hearing aid compatibility, such as
the Rules governing the design, selection, or acquisition of digital wireless handsets
and the marketing or distribution of such handsets to consumers in the United States
and its territories.
(k) "Investigations" means collectively, the investigations commenced by the Bureau
regarding Claro's compliance with the Hearing Aid Compatibility Rules during the
2009, 2010, and 2011 reporting periods.
(l) "Operating Procedures" means the standard, internal operating procedures and
compliance policies established by Claro to implement the Compliance Plan.
(m) "Parties" means Claro and the Bureau, each of which is a "Party."
(n) "Rules" means the Commission's regulations found in Title 47 of the Code of
Federal Regulations.

II.

BACKGROUND

2.
In the 2003 Hearing Aid Compatibility Order, the Commission adopted several measures
to enhance the ability of consumers with hearing loss to access digital wireless telecommunications.3 The
Commission established technical standards for radio frequency interference (the M rating) and inductive
coupling (the T rating)4 that digital wireless handsets must meet to be considered compatible with hearing

3 The Commission adopted these requirements for digital wireless telephones under the authority of the Hearing Aid
Compatibility Act of 1988, Pub. L. No. 100-394, 102 Stat. 976 (codified at 47 U.S.C. 609 note, 610, 610 note).
See Section 68.4(a) of the Commission's Rules Governing Hearing Aid-Compatible Telephones, Report and Order,
18 FCC Rcd 16753, 16787, para. 89 (2003); Erratum, 18 FCC Rcd 18047 (2003) (Hearing Aid Compatibility
Order
); Order on Reconsideration and Further Notice of Proposed Rulemaking, 20 FCC Rcd 11221 (2005).
4 As subsequently amended, Section 20.19(b)(1) of the Rules provided that, for the period beginning June 6, 2008,
and ending December 31, 2009, a newly certified wireless handset is deemed hearing aid-compatible for radio
frequency interference if, at minimum, it meets the M3 rating associated with the technical standard set forth in
either the standard document "American National Standard Methods of Measurement of Compatibility between
Wireless Communication Devices and Hearing Aids," ANSI C63.19-2006 (June 12, 2006) or ANSI C63.19-2007
(June 8, 2007). Beginning January 1, 2010, a newly certified handset had to meet at least an M3 rating under ANSI
C63.19-2007 to be considered hearing aid-compatible for radio frequency interference. 47 C.F.R. 20.19(b)(1).
Section 20.19(b)(2) provided that, for the period beginning June 6, 2008, and ending December 31, 2009, a newly
certified wireless handset was deemed hearing aid-compatible for inductive coupling if, at minimum, it met the T3
rating associated with the technical standard as set forth in ANSI C63.19-2006 or ANSI C63.19-2007, and beginning
January 1, 2010, it was deemed hearing aid-compatible for inductive coupling if it met at least a T3 rating under
ANSI C63.19-2007. Id. 20.19(b)(2). Grants of certification issued before June 6, 2008, under previous versions
(continued . . . )
2

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DA 13-1723

aids operating in acoustic coupling and inductive coupling (telecoil) modes, respectively. For each of
these standards, the Commission further established deadlines by which manufacturers and service
providers were required to offer specified numbers or percentages of digital wireless handsets per air
interface5 that are compliant with the relevant standard.6 In February 2008, as part of a comprehensive
reconsideration of the effectiveness of the Hearing Aid Compatibility Rules, the Commission released an
order that, among other things, adopted new hearing aid-compatible handset deployment benchmarks
beginning in 2008.7
3.
On January 15, 2010, Claro submitted its hearing aid compatibility status report for the
January 1, 2009 to December 31, 2009 reporting period.8 Based on its review of that report, the
Commission's Wireless Telecommunications Bureau (Wireless Bureau) referred this matter to the Bureau
for investigation and possible enforcement action. On September 17, 2010, the Bureau's Spectrum
Enforcement Division (Division) issued a letter of inquiry (2010 LOI) to Claro, directing Claro to submit
a sworn written response to a series of questions relating to Claro's compliance with Sections 20.19(c)(3)
and 20.19(d)(3) of the Rules.9 Claro responded to the 2010 LOI on December 17, 2010.10 In its 2010
LOI Response, Claro provided updated information regarding its handset model offerings during the 2009
reporting period.11 Claro also disclosed possible hearing aid-compatible handset deployment violations
during the January 1, 2010 to November 30, 2010 reporting period.12
(. . . continued from previous page)
of ANSI C63.19 remained valid for hearing aid compatibility purposes. A recently adopted further amendment to
Section 20.19(b) of the Rules permits manufacturers to test handsets for hearing aid compatibility using the 2011
version of the ANSI standard (ANSI C63.19-2011) as an alternative to ANSI C63.19-2007. See Amendment of the
Commission's Rules Governing Hearing Aid-Compatible Mobile Handsets
, Third Report and Order, 27 FCC Rcd
3732 (WTB/OET 2012).
5 The term "air interface" refers to the technical protocol that ensures compatibility between mobile radio service
equipment, such as handsets, and the service provider's base stations. Currently, the leading air interfaces include
Code Division Multiple Access (CDMA), Global System for Mobile Communications (GSM), Integrated Digital
Enhanced Network (iDEN), and Wideband Code Division Multiple Access (WCDMA) a/k/a Universal Mobile
Telecommunications System (UMTS).
6 See Hearing Aid Compatibility Order, 18 FCC Rcd at 16780, para. 65; 47 C.F.R. 20.19(c), (d).
7 See Amendment of the Commission's Rules Governing Hearing Aid-Compatible Mobile Handsets, First Report and
Order, 23 FCC Rcd 3406 (2008); Order on Reconsideration and Erratum, 23 FCC Rcd 7249 (2008).
8 See Puerto Rico Telephone Company, Inc. d/b/a Claro Hearing Aid Compatibility Status Report (filed Jan. 15,
2010), available at http://wireless.fcc.gov/hac_documents/100317/Puerto%20Rico%20Telephon_93.PDF.
9 See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Juan
Deliz Romn, Manager Legal Affairs and Contracts, Puerto Rico Telephone Company, Inc. d/b/a Claro (Sept. 17,
2010) (on file in EB-SED-13-0009248).
10 See Letter from Wanda Arroyo, Sales and Marketing Director, Puerto Rico Telephone Company, Inc. d/b/a Claro,
to Marlene H. Dortch, Secretary, FCC (Dec. 17, 2010) (on file in EB-SED-13-0009248) (2010 LOI Response).
11 See id. at 2, Attachment A, Revised 2009 Handset List.
12 See id. at Attachment B, 2010 Handset List for the Period January 1, 2010, to November 30, 2010. Claro
submitted this information prior to filing its hearing aid compatibility status report for the 2010 reporting period.
See Puerto Rico Telephone Company, Inc. d/b/a Claro Hearing Aid Compatibility Status Report (filed Jan. 18,
2011), available at http://wireless.fcc.gov/hac_documents/110210/5901840_17.PDF. Claro supplemented its 2010
LOI response to provide information regarding its corporate ownership structure. See Letter from Francisco Silva,
General Counsel, Puerto Rico Telephone Company, Inc. d/b/a Claro, to Nissa Laughner, Attorney Advisor,
Spectrum Enforcement Division, FCC Enforcement Bureau (Feb. 23, 2011) (on file in EB-SED-13-0009248).
3

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DA 13-1723

4.
On January 17, 2012, Claro submitted its hearing aid compatibility status report for the
January 1, 2011 to December 31, 2011 reporting period.13 Based on its review of that report, the Wireless
Bureau also referred this matter to the Bureau for investigation and possible enforcement action. On
August 2, 2012, the Division issued a letter of inquiry (2012 LOI) to Claro, directing it to submit a sworn
written response to a series of questions relating to Claro's compliance with the Hearing Aid
Compatibility Rules during the 2011 reporting period.14 Claro responded to the 2012 LOI on August 22,
2012.15 On November 12, 2012, Claro supplemented its 2012 LOI Response with additional information
concerning its handset model offerings during the 2012 reporting period.16 The Bureau and Claro entered
into tolling agreements to toll the statute of limitations.17

III.

TERMS OF AGREEMENT

5.

Adopting Order

. The Parties agree that the provisions of this Consent Decree shall be
subject to final approval by the Bureau by incorporation of such provisions by reference in the Adopting
Order.
6.

Jurisdiction

. Claro agrees that the Bureau has jurisdiction over it and the matters
contained in this Consent Decree and that the Bureau has the authority to enter into and adopt this
Consent Decree.
7.

Effective Date; Violations

. The Parties agree that this Consent Decree shall become
effective on the Effective Date as defined herein. As of the Effective Date, the Adopting Order and this
Consent Decree shall have the same force and effect as any other order of the Commission. Any violation
of the Adopting Order or of the terms of this Consent Decree shall constitute a separate violation of a
Commission order, entitling the Commission to exercise any rights and remedies attendant to the
enforcement of a Commission order.
8.

Termination of Investigations

. In express reliance on the covenants and representations
in this Consent Decree and to avoid further expenditure of public resources, the Bureau agrees to
terminate the Investigations. In consideration for the termination of the Investigations, Claro agrees to the
terms, conditions, and procedures contained herein. The Bureau further agrees that in the absence of new
material evidence, the Bureau will not use the facts developed in the Investigations through the Effective

13 See Puerto Rico Telephone Company, Inc. d/b/a Claro Hearing Aid Compatibility Status Report (filed Jan. 17,
2012), available at http://wireless.fcc.gov/hac_documents/120307/6563763_227.PDF.
14 See Letter from John D. Poutasse, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Francisco
J. Silva, General Counsel, Puerto Rico Telephone Company, Inc. d/b/a Claro (Aug. 2, 2012) (on file in EB-SED-12-
00003416).
15 See Letter from Wanda Arroyo, Sales and Marketing Director, Puerto Rico Telephone Company, Inc. d/b/a Claro,
to Marlene H. Dortch, Secretary, FCC (Aug. 22, 2012) (on file in EB-SED-12-00003416) (2012 LOI Response).
16 See Letter from Francisco J. Silva, General Counsel, Puerto Rico Telephone Company, Inc. d/b/a Claro, to Nissa
Laughner, Attorney Advisor, Spectrum Enforcement Division, FCC Enforcement Bureau (Nov. 12, 2012) (on file in
EB-SED-12-00003416).
17 See, e.g., Tolling Agreement Extension, executed by and between John D. Poutasse, Chief, Spectrum Enforcement
Division, FCC Enforcement Bureau, and Francisco J. Silva, General Counsel, Puerto Rico Telephone Company, Inc.
d/b/a Claro (July 8, 2013) (on file in EB-SED-13-0009248); Tolling Agreement Extension, executed by and between
John D. Poutasse, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, and Francisco J. Silva,
General Counsel, Puerto Rico Telephone Company, Inc. d/b/a Claro (July 8, 2013) (on file in EB-SED-12-
00003416).
4

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Date, 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 Claro concerning the matters that were the
subject of the Investigations. The Bureau also agrees that in the absence of new material evidence it will
not use the facts developed in the Investigations through the Effective Date, 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 Claro with respect to Claro's basic qualifications, including its character
qualifications, to be a Commission licensee or to hold Commission licenses or authorizations.
9.

Compliance Officer

. Within thirty (30) calendar days after the Effective Date, Claro
shall designate a senior corporate manager with the requisite corporate and organizational authority to
serve as Compliance Officer and to discharge the duties set forth below. The person designated as the
Compliance Officer shall be responsible for developing, implementing, and administering the Compliance
Plan and ensuring that Claro complies with the terms and conditions of the Compliance Plan and this
Consent Decree. In addition to the general knowledge of the Communications Laws necessary to
discharge his/her duties under this Consent Decree, the Compliance Officer shall have specific knowledge
of the Hearing Aid Compatibility Rules prior to assuming his/her duties.
10.

Compliance Plan

. For purposes of settling the matters set forth herein, Claro agrees that
it shall within sixty (60) calendar days after the Effective Date, develop and implement a Compliance
Plan designed to ensure future compliance with the Communications Laws and with the terms and
conditions of this Consent Decree. With respect to the Hearing Aid Compatibility Rules, Claro shall
implement the following procedures:
(a)

Operating Procedures on Hearing Aid Compatibility

. Within sixty (60) calendar
days after the Effective Date, Claro shall establish Operating Procedures that all
Covered Employees must follow to help ensure Claro's compliance with the Hearing
Aid Compatibility Rules. Claro's Operating Procedures shall include internal
procedures and policies specifically designed to ensure that Claro offers to consumers
the number or percentage of digital wireless hearing aid-compatible handset models
required by the Hearing Aid Compatibility Rules, and accurately reports its handset
offerings in annual hearing aid compatibility status reports. Claro also shall develop
a Compliance Checklist that describes the steps that a Covered Employee must
follow to ensure that the inclusion of a new handset model, or discontinuance of an
existing handset model offering, will not result in a violation of the Commission's
digital wireless hearing aid-compatible handset deployment requirements. At a
minimum, the Compliance Checklist shall require Covered Employees to verify the
hearing aid compatibility rating(s) of each existing and proposed handset model
offering using the Commission's equipment authorization database.
(b)

Compliance Manual

. Within sixty (60) calendar days after the Effective Date, the
Compliance Officer shall develop and distribute a Compliance Manual to all Covered
Employees. The Compliance Manual shall explain the Hearing Aid Compatibility
Rules and set forth the Operating Procedures that Covered Employees shall follow to
help ensure Claro's compliance with the Hearing Aid Compatibility Rules. Claro
shall periodically review and revise the Compliance Manual as necessary to ensure
that the information set forth therein remains current and complete. Claro shall
distribute any revisions to the Compliance Manual promptly to all Covered
Employees.
(c)

Compliance Training Program

. Claro shall establish and implement a Compliance
Training Program on compliance with the Hearing Aid Compatibility Rules and the
5

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DA 13-1723

Operating Procedures. As part of the Compliance Training Program, Covered
Employees shall be advised of Claro's obligation to report any noncompliance with
the Hearing Aid Compatibility Rules under paragraph 11 of this Consent Decree and
shall be instructed on how to disclose noncompliance to the Compliance Officer. All
Covered Employees shall be trained pursuant to the Compliance Training Program
within sixty (60) calendar days after the Effective Date, except that any person who
becomes a Covered Employee at any time after the initial training session shall be
trained within thirty (30) calendar days after the date such person becomes a Covered
Employee. Claro shall repeat the compliance training on an annual basis, and shall
periodically review and revise the Compliance Training Program as necessary to
ensure that it remains current and complete and to enhance its effectiveness.
11.

Reporting Noncompliance

. Claro shall report any noncompliance with the Hearing Aid
Compatibility Rules and with the terms and conditions of this Consent Decree within fifteen (15) calendar
days after discovery of such noncompliance. Such reports shall include a detailed explanation of (i) each
instance of noncompliance; (ii) the steps that Claro has taken or will take to remedy such noncompliance;
(iii) the schedule on which such remedial actions will be taken; and (iv) the steps that Claro has taken or
will take to prevent the recurrence of any such noncompliance. All reports of noncompliance shall be
submitted to the Chief, Spectrum Enforcement Division, Enforcement Bureau, Federal Communications
Commission, Room 3-C366, 445 12th Street, S.W. Washington, DC 20554, with a copy submitted
electronically to Nissa Laughner at Nissa.Laughner@fcc.gov and to Pamera Hairston at
Pamera.Hairston@fcc.gov.
12.

Compliance Reports

. Claro shall file Compliance Reports with the Commission ninety
(90) calendar days after the Effective Date, twelve (12) months after the Effective Date, twenty-four (24)
months after the Effective Date, and thirty-six (36) months after the Effective Date.
(a) Each Compliance Report shall include a detailed description of Claro's efforts during
the relevant period to comply with the terms and conditions of this Consent Decree
and the Hearing Aid Compatibility Rules. In addition, each Compliance Report shall
include a certification by the Compliance Officer, as an agent of and on behalf of
Claro, stating that the Compliance Officer has personal knowledge that Claro (i) has
established and implemented the Compliance Plan; (ii) has utilized the Operating
Procedures since the implementation of the Compliance Plan; and (iii) is not aware of
any instances of noncompliance with the terms and conditions of this Consent
Decree, including the reporting obligations set forth in paragraph 11 hereof.
(b) The Compliance Officer's certification shall be accompanied by a statement
explaining the basis for such certification and must comply with Section 1.16 of the
Rules18 and be subscribed to as true under penalty of perjury in substantially the form
set forth therein.
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Claro, shall provide the Commission with a
detailed explanation of the reason(s) why and describe fully (i) each instance of
noncompliance; (ii) the steps that Claro has taken or will take to remedy such
noncompliance, including the schedule on which proposed remedial actions will be
taken; and (iii) the steps that Claro has taken or will take to prevent the recurrence of

18 47 C.F.R. 1.16.
6

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DA 13-1723

any such noncompliance, including the schedule on which such preventive action
will be taken.
(d) All Compliance Reports shall be submitted to the Chief, Spectrum Enforcement
Division, Enforcement Bureau, Federal Communications Commission, 445 12th
Street, S.W., Washington, DC 20554, with a copy submitted electronically to Nissa
Laughner at Nissa.Laughner@fcc.gov and Pamera Hairston at
Pamera.Hairston@fcc.gov.
13.

Termination Date

. Unless stated otherwise, the requirements of paragraphs 9 through
12 of this Consent Decree shall expire thirty-six (36) months after the Effective Date.
14.

Section 208 Complaints; Subsequent Investigations

. Nothing in this Consent Decree
shall prevent the Commission or its delegated authority from adjudicating complaints filed pursuant to
Section 208 of the Act19 against Claro 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 complaints 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 Claro with the Communications
Laws.
15.

Voluntary Contribution

. Claro agrees that it will make a voluntary contribution to the
United States Treasury in the amount of six hundred fifty thousand dollars ($650,000) (Voluntary
Contribution), such Voluntary Contribution to be made in four equal installments of one hundred sixty-
two thousand five hundred dollars ($162,500) (each, an Installment Payment). The first Installment
Payment is due within thirty (30) calendar days after the Effective Date. The second Installment Payment
is due on or before December 1, 2013. The third Installment Payment is due on or before April 1, 2014.
The fourth and final Installment Payment is due on or before August 1, 2014. Claro shall make the first
and all subsequent Installment Payments in United States Dollars without further demand or notice by the
dates specified above. Claro acknowledges and agrees that upon execution of this Consent Decree the
Voluntary Contribution and each Installment Payment shall become a "Claim" or "Debt" as defined in 31
U.S.C. 3701(b)(1). Upon an Event of Default (as defined below), all procedures for collection as
permitted by law may, at the Commission's discretion, be initiated. Claro shall also send electronic
notification of each Installment Payment on the date said payment is made to Nissa Laughner at
Nissa.Laughner@fcc.gov, Pamera Hairston at Pamera.Hairston@fcc.gov, and to Samantha Peoples at
Sam.Peoples@fcc.gov. The payment must be made by check or similar instrument, wire transfer, or
credit card, and must include the NAL/Account number and FRN referenced above. Regardless of the
form of payment, a completed FCC Form 159 (Remittance Advice) must be submitted.20 When
completing the FCC Form 159, enter the Account Number in block number 23A (call sign/other ID) and
enter the letters "FORF" in block number 24A (payment type code). Below are additional instructions
you should follow based on the form of payment you select:

Payment by check or money order must be made payable to the order of the Federal
Communications Commission. Such payments (along with the completed Form 159) must be
mailed to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-

19 47 U.S.C. 208.
20 An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
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9000, or sent via overnight mail to U.S. Bank Government Lockbox #979088, SL-MO-C2-
GL, 1005 Convention Plaza, St. Louis, MO 63101.

Payment by wire transfer must be made to ABA Number 021030004, receiving bank
TREAS/NYC, and Account Number 27000001. To complete the wire transfer and ensure
appropriate crediting of the wired funds, a completed Form 159 must be faxed to U.S. Bank
at (314) 418-4232 on the same business day the wire transfer is initiated.

Payment by credit card must be made by providing the required credit card information on
FCC Form 159 and signing and dating the Form 159 to authorize the credit card payment.
The completed Form 159 must then be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
63101.
If you have questions regarding payment procedures, please contact the Financial Operations
Group Help Desk by phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.
16.

Event of Default

. Claro agrees that an Event of Default shall occur upon the failure by
Claro to pay the full amount of any Installment Payment on or before the due date specified in this
Consent Decree.
17.

Interest, Charges for Collection, and Acceleration of Maturity Date

. After an Event
of Default has occurred under this Consent Decree, the then unpaid amount of the Voluntary Contribution
shall accrue interest, computed using the rate of the U.S. Prime Rate in effect on the date of the Event of
Default plus 4.75 percent, from the date of the Event of Default until payment in full. Upon an Event of
Default, the then unpaid amount of the Voluntary Contribution, together with interest, as aforesaid, any
penalties permitted and/or required by the law, including but not limited to interest and penalties
permitted under 31 U.S.C. 3717 and administrative charge(s), plus the costs of collection, litigation, and
attorneys' fees, shall become immediately due and payable, without notice, presentment, demand, protest,
or notice of protest of any kind, all of which are waived by Claro.
18.

Waivers

. Claro 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
Decree and the Adopting Order, provided the Bureau issues an Adopting Order as defined herein. Claro
shall retain the right to challenge Commission interpretation of the Consent Decree or any terms
contained herein. 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 Claro nor the Commission shall contest the
validity of the Consent Decree or of the Adopting Order, and Claro shall waive any statutory right to a
trial de novo. Claro hereby agrees to waive any claims it may have under the Equal Access to Justice
Act21 relating to the matters addressed in this Consent Decree.
19.

Invalidity

. In the event that this Consent Decree in its entirety 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.

21 Equal Access to Justice Act, Pub L. No. 96-481, 94 Stat. 2325 (1980) (codified at 5 U.S.C. 504); see also
47 C.F.R. 1.15011.1530.
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20.

Subsequent Rule or Order

. The Parties 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 Claro does not expressly
consent) that provision will be superseded by such Rule or Commission order.
21.

Successors and Assigns

. Claro agrees that the provisions of this Consent Decree shall
be binding on its successors, assigns, and transferees.
22.

Final Settlement

. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties with respect to the Investigations. The Parties further
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 Communications Laws.
23.

Modifications

. This Consent Decree cannot be modified without the advance written
consent of both Parties.
24.

Paragraph Headings

. The headings of the paragraphs in this Consent Decree are
inserted for convenience only and are not intended to affect the meaning or interpretation of this Consent
Decree.
25.

Authorized Representative

. The individual signing this Consent Decree on behalf of
Claro represents and warrants that he is authorized by Claro to execute this Consent Decree and to bind
Claro and all of its subsidiaries to the obligations set forth herein. The FCC signatory represents that he is
signing this Consent Decree in his official capacity and that he is authorized to execute this Consent
Decree.
26.

Counterparts

. This Consent Decree may be signed in any number of counterparts
(including by facsimile), each of which, when executed and delivered, shall be an original, and all of
which counterparts together shall constitute one and the same fully executed instrument.
________________________________
Robert H. Ratcliffe
Acting Chief
Enforcement Bureau
________________________________
Date
________________________________
Enrique Ortiz de Montellano
President
Puerto Rico Telephone Company, Inc. d/b/a Claro
________________________________
Date
9

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