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Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File No. EB-06-SE-001
In the Matter of
) NAL/Acct. No. 200732100040
Verizon
) FRN # 0016304214
)
ORDER
Adopted: July 17, 2007 Released: July 17, 2007
By the Commission:
1. In this Order, we adopt the attached Consent Decree entered into
between the Commission and Verizon. The Consent Decree terminates the
Enforcement Bureau's investigation into Verizon's compliance with Part
4 of the Commission's rules regarding the reporting of network
outages.
2. The Commission and Verizon have negotiated the terms of a Consent
Decree that would resolve this matter and terminate the investigation.
A copy of the Consent Decree is attached hereto and incorporated by
reference.
3. We conclude that, in the absence of new material evidence, no
substantial or material questions of fact exist with respect to this
matter as to whether Verizon possesses the basic qualifications,
including those related to character, to hold or obtain any FCC
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 and
terminating the Enforcement Bureau's investigation.
5. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the
Communications Act of 1934, as amended, the Consent Decree attached to
this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the Enforcement Bureau's investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that Verizon will make a voluntary contribution
to the United States Treasury in the amount of one million, four
hundred thousand dollars ($1,400,000) within thirty (30) calendar days
after the Effective Date. Such contribution shall be made by credit
card through the Commission's Debt and Credit Management Center at
(202) 418-1995, or by mailing a check or similar instrument, payable
to the order of the Federal Communications Commission, to the 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. The payment should reference the
NAL/Acct. No. and FRN number referenced above.
8. 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 Kathleen Grillo, Vice President, Federal Regulatory,
Verizon, 1300 I Street, N.W., Suite 400 West, Washington, D.C. 20005.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
CONSENT DECREE
1. The Federal Communications Commission (the "Commission" or "FCC") and
Verizon, by their respective authorized representatives, hereby enter
into this Consent Decree for the purpose of terminating the
Enforcement Bureau's Investigation into Verizon's compliance with the
Commission's regulations in 47 C.F.R. Part 4 regarding the reporting
of network outages.
2. 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. S:S:
151 et seq.
(b) "Adopting Order" or "Order" means an order of the Commission adopting
this Consent Decree.
(c) "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
(d) "Commission" or "FCC" means the Federal Communications Commission.
(e) "Effective Date" means the date on which the Commission releases the
Order.
(f) "Investigation" means the investigation initiated by the Bureau's May
10, 2006 Letter of Inquiry regarding Verizon's compliance with the
Commission's regulations in Part 4 of its Rules regarding the reporting of
network outages through the Effective Date.
(g) "Parties" means Verizon and the Commission.
(h) "Rules" means the Commission's regulations set forth in Title 47 of
the Code of Federal Regulations.
(i) "Verizon" means the regulated, wholly owned subsidiaries of Verizon
Communications Inc.
I. BACKGROUND
3. Pursuant to Part 4 of the Rules, a wireline communications provider is
required to submit to the Commission an electronic Notification within
120 minutes after discovering that it has experienced a network outage
of at least 30 minutes duration that: (1) potentially affects at least
900,000 user minutes of either telephony or paging; (2) affects at
least 1,350 DS3 minutes; (3) potentially affects any special offices
or facilities, as defined by the Rules; or (4) potentially affects a
911 special facility, as defined by the Rules. 47 C.F.R. S:S: 4.5,
4.9(f). Within 72 hours after discovering such an outage, a wireline
communications provider is required to submit electronically an
Initial Communications Outage Report. 47 C.F.R. S: 4.9(f).
4. Verizon is a wireline communications provider and is subject to the
network outage reporting regulations in Part 4 of the Commission's
Rules.
5. On May 10, 2006, the Bureau issued a Letter of Inquiry ("LOI")
initiating an investigation regarding Verizon's outage reporting
procedures and Verizon's compliance with the Commission's outage
reporting rules. On June 21, 2006, Verizon submitted a response to the
LOI.
II. TERMS OF AGREEMENT
6. 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.
7. Verizon agrees that the Commission has jurisdiction over it and the
subject matter contained in this Consent Decree and the authority to
enter into and adopt this Consent Decree.
8. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties of the
Investigation. In express reliance on the covenants and
representations in this Consent Decree, the Commission agrees to
terminate the Investigation without any finding of liability on the
part of Verizon. In consideration for the termination of the
Investigation and in accordance with the terms of this Consent Decree,
Verizon agrees to the terms, conditions, and procedures contained
herein.
9. The Parties agree that this Consent Decree shall become binding on the
Parties on the Effective Date. Upon release, the Adopting Order and
this Consent Decree shall have the same force and effect as any other
final order of the Commission and any violation of the terms and
conditions of this Consent Decree shall constitute a violation of a
Commission order.
10. 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, Verizon does not admit or
deny noncompliance, violation or liability for violating the Act or
the Rules in connection with the matters that are the subject of this
Consent Decree.
11. Verizon agrees that it will make a voluntary contribution to the
United States Treasury, without further protest or recourse, in the
amount of one million, four hundred thousand dollars $1,400,000 within
thirty (30) calendar days after the Effective Date. Such contribution
shall be made by credit card through the Commission's Debt and Credit
Management Center at (202) 418-1995, or by mailing a check or similar
instrument, payable to the order of the Federal Communications
Commission, to the 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. The payment
should reference Acct. No. 200732100040 and FRN # 0016304214.
12. Verizon agrees that it will develop, within thirty (30) calendar days
from the Effective Date, an internal Compliance Plan to ensure
Verizon's future compliance with the Commission's regulations in Part
4 of its Rules regarding the reporting of disruptions to
communications. The Compliance Plan will include, at a minimum, the
following components:
A. Compliance Training Program. Verizon shall establish and maintain an
FCC outage reporting training program, as detailed below, for all
employees who are responsible for gathering and/or analyzing information
regarding Verizon's network outages, entering that information into any
Verizon database(s) and/or record(s) that forms the basis of Verizon's
reporting of network outages to the Commission, or compiling and/or
submitting Verizon's outage reports to the Commission.
i. Verizon's Compliance Training Program shall address, at a minimum, the
FCC's Rules governing the reporting of network outages, the information
and calculations necessary to determine whether an outage is reportable
under the FCC's Rules, and the time periods during which notifications and
reports of reportable outages must be submitted to the FCC. Verizon's
Compliance Training Program shall also address the methods and procedures
adopted by Verizon to identify and report those network outages that
satisfy the FCC's reporting criteria in order to ensure compliance with
the FCC's outage reporting Rules. The training program shall also include
information on the potential internal and regulatory consequences of
failing to comply with Verizon's methods and procedures and/or the FCC's
outage reporting requirements.
ii. Verizon shall provide the foregoing outage reporting training within
six months of the Effective Date and will update the training at least
annually for all of its employees who are responsible for gathering and/or
analyzing information regarding Verizon's network outages, entering that
information into any Verizon database(s) and/or record(s) that forms the
basis of Verizon's reporting of network outages to the Commission, or
compiling and/or submitting Verizon's outage reports to the Commission.
Verizon will also provide training to new employees responsible for these
activities.
iii. Verizon shall update and enhance the foregoing training regarding the
FCC's outage reporting requirements as appropriate and necessary.
B. Internal Controls Over Outage Reporting. Verizon will create, and shall
maintain, a warning system that alerts an employee if he/she has entered
incomplete information into Verizon's vRepair Abnormal Events (vRAE)
database regarding a network outage in a way that may interfere with
Verizon's ability to identify and report a reportable network outage.
C. Annual Report. Twelve months and twenty-four months after the Effective
Date, Verizon shall submit an affidavit or declaration under penalty of
perjury, signed and dated by an authorized officer of Verizon with
personal knowledge of the representations therein, verifying that Verizon
has complied with the terms of this Consent Decree. The declaration shall
be submitted to Kathryn S. Berthot, Chief, Spectrum Enforcement Division,
Enforcement Bureau, Federal Communications Commission, 445 12th Street,
S.W., Washington, D.C. 20554. The declaration or affidavit must comply
with Section 1.16 of the Commission's rules, 47 C.F.R. S: 1.16, and be
substantially in the form set forth therein.
D. Termination. The provisions of this paragraph shall remain in effect
for two (2) years from the Effective Date.
13. The Commission agrees that, in the absence of new material evidence,
it will not institute, on its own motion or in response to third-party
objection, any new proceeding, formal or informal, or take any action
on its own motion against Verizon for possible past violations of Part
4 of the Commission's rules regarding the reporting of network outages
prior to the Effective Date. The Commission also agrees that, in the
absence of new material evidence, it will not use the facts developed
in the Investigation through the Effective Date, or the existence of
this Consent Decree, to institute on its own motion any new
proceeding, formal or informal, or to take any action on its own
motion, against Verizon for possible violations of Part 4 of the
Commission's rules regarding the reporting of network outages prior to
the Effective Date. The Commission further agrees that, in the absence
of new material evidence, it will not use the facts developed in this
Investigation 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 Verizon
with respect to its basic qualifications, including its character
qualifications, to be a Commission licensee.
14. Nothing in this Consent Decree shall prevent the Commission or its
delegated authority from adjudicating any formal or informal complaint
filed against Verizon pursuant to Section 208 of the Act, 47 U.S.C. S:
208, and to take action in response to such formal complaint. If any
such complaint is made, the adjudication of that complaint will be
based solely on the record developed in that proceeding and the
Commission shall not use any facts developed through the Investigation
in any such proceeding. Except as expressly provided in this Consent
Decree, nothing herein shall prevent the Commission or its delegated
authority from investigating Verizon's compliance with the Act, the
Commission's rules, or this Consent Decree.
15. Verizon 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 Order adopts this Consent Decree without
change, addition, or modification. Verizon shall retain the right to
challenge Commission interpretation of the Consent Decree or any terms
contained herein.
16. Verizon's decision to enter this Consent Decree is expressly
contingent upon the Commission's issuance of the Order adopting the
Consent Decree without change, addition, or modification.
17. Nothing in this Consent Decree shall preclude Verizon from petitioning
the Commission for relief as to future obligations under Part 4 of the
Commission's Rules.
18. 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.
19. The Parties agree that if either Party (or the United States on behalf
of the Commission), brings a judicial action to enforce the terms of
the Order adopting this Consent Decree, neither Verizon nor the
Commission shall contest the validity of the Consent Decree or the
Adopting Order, and Verizon will waive any statutory right to a trial
de novo regarding the terms or validity of the Consent Decree.
Verizon, however, may present evidence that it has not violated the
Consent Decree.
20. Verizon agrees that any violation of any term 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.
21. 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 Verizon does not consent), that provision will
be superseded by such Commission rule or order.
22. This Consent Decree cannot be modified without the advance written
consent of both Parties.
23. This Consent Decree may be signed in counterparts.
For the Federal Communications Commission:
____________________________
Marlene H. Dortch
Secretary
____________________________
Date
For Verizon:
____________________________
Michael D. Poling
Senior Vice President -- National Operations and Support
____________________________
Date
47 C.F.R. S: 4.1 et seq.
47 U.S.C. S: 154(i).
Under this provision, Verizon will not be required to provide outage
reporting compliance training to employees whose responsibilities do not
include gathering, analysis, or data entry of information regarding
Verizon's network outages or compiling Verizon's outage reports, or whose
involvement in Verizon's outage reporting activities is limited to
performing job functions that are not specific to outage reporting under
the Commission's Rules.
(Continued from previous page)
(continued)
Federal Communications Commission FCC 07-124
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Federal Communications Commission FCC 07-124
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Federal Communications Commission DA 07-