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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

                  Federal Communications Commission FCC 07-124

   5

                    Federal Communications Commission DA 07-