Federal Communications Commission DA 12-612
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Telrite Corporation
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File No.:  EB-05-IH-2348
Acct. No.:  200832080084
FRN:  0007-9604-20
ORDER
Adopted:  April 18, 2012 Released:  April 18, 2012
By the Commission:
1. In this Order, we adopt the attached Consent Decree between the Enforcement 
Bureau (Bureau) of the Federal Communications Commission (Commission) and Telrite 
Corporation (Telrite).  The Consent Decree terminates an investigation and Notice of Apparent 
Liability for Forfeiture (NAL) by the Commission against Telrite for possible violations of 
Sections 9(a)(1), 225(b)(1), 251(e)(2), and 254(d) of the Communications Act of 1934, as 
amended (Act),1 and Sections 1.1154, 1.1157(b)(1), 52.17(a), 52.17(b), 52.32(a), 52.32(b), 
54.706, 54.711, 64.604(c)(5)(iii)(A), and 64.604(c)(5)(iii)(B) of the Commission’s rules2
concerning the payment of annual regulatory fees; contributions to the Universal Service Fund 
and Telecommunications Relay Services Fund; contributions to cost-recovery mechanisms for 
North American Numbering Plan and Local Number Portability administration; and the 
submission of information as set forth on the Telecommunications Reporting Worksheets (i.e.,
FCC Forms 499-A and 499-Q).
2. A copy of the Consent Decree negotiated by the Commission and Telrite 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 investigation.
4. In the absence of material new evidence relating to this matter, we conclude that 
our investigation raises no substantial or material questions of fact as to whether Telrite possesses 
the basic qualifications, including those related to character, to hold or obtain any Commission 
license or authorization.
  
1 47 U.S.C. §§ 159(a)(1), 225(b)(1), 251(e)(2), 254(d).
2 47 C.F.R. §§ 1.1154, 1.1157(b)(1), 52.17(a), 52.17(b), 52.32(a), 52.32(b), 54.706, 54.711, 
64.604(c)(5)(iii)(A), 64.604(c)(5)(iii)(B).
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5. Accordingly, IT IS ORDERED that, pursuant to Sections 4(i) and 503(b) of the 
Act,3 and Sections 0.111 and 0.311 of the rules,4 the Consent Decree attached to this Order IS 
ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS 
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 David H. Solomon, 
Wilkinson Barker Knauer, LLP, 2300 N Street, N.W., Suite 700, Washington, DC 20037.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief
Enforcement Bureau 
Federal Communications Commission 
  
3 47 U.S.C. §§ 154(i), 503(b).
4 47 C.F.R. §§ 0.111, 0.311.
Federal Communications Commission DA 12-612
Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Telrite Corporation
)
)
)
)
)
)
)
File No.:  EB-05-IH-2348
Acct. No.:  200832080084
FRN:  0007-9604-20
CONSENT DECREE
1. The Federal Communications Commission and Telrite Corporation, by their authorized 
representatives, hereby enter into this Consent Decree for the purpose of terminating the Commission’s 
investigation into whether Telrite violated Sections 9(a)(1), 225(b)(1), 251(e)(2), and 254(d) of the 
Communications Act of 1934, as amended,5 and Sections 1.1154, 1.1157(b)(1), 52.17(a), 52.17(b), 
52.32(a), 52.32(b), 54.706, 54.711, 64.604(c)(5)(iii)(A), and 64.604(c)(5)(iii)(B) of the Commission’s 
rules,6 concerning the following issues: (1) the submission of information as set forth on the 
Telecommunications Reporting Worksheets (i.e., FCC Forms 499-A and 499-Q); (2) contributions to the 
Universal Service Fund and Telecommunications Relay Services Fund; (3) contributions to the cost-
recovery mechanisms for North American Numbering Plan and Local Number Portability administration; 
and (4) payment of annual regulatory fees.
I. DEFINITIONS
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. § 151 et seq.
(b) “Adopting Order” means an Order of the Commission 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) “Commission” and “FCC” mean the Federal Communications Commission and all of 
its bureaus and offices.  
(e) “Communications Laws” means collectively, the Act, the Rules, and the published 
and promulgated orders and decisions of the Commission to which Telrite is subject 
by virtue of its business activities.
(f) “Compliance Plan” means the plan described in this Consent Decree at paragraph 14.
(g) “Covered Employees” means all employees and agents of Telrite who perform, or 
supervise, oversee, or manage the performance of, duties that relate to Telrite’s 
  
5 47 U.S.C. §§ 159(a)(1), 225(b)(1), 251(e)(2), 254(d).
6 47 C.F.R. §§ 1.1154, 1.1157(b)(1), 52.17(a), 52.17(b), 52.32(a), 52.32(b), 54.706, 54.711, 64.604(c)(5)(iii)(A), 
64.604(c)(5)(iii)(B).
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responsibilities under the Communications Laws, including the Federal Regulatory 
Reporting and Contribution Rules.
(h) “Effective Date” means the date on which the Commission releases the Adopting 
Order.
(i) “Federal Regulatory Reporting and Contribution Rules” means Sections 9, 225, 
251(e)(2), and 254(d) of the Act,7 Sections 1.1154, 1.1157, 52.17, 52.32, 54.706, 
54.711, and 64.604 of the Rules,8 and other provisions of the Act, the Rules, and 
Commission orders governing related federal regulatory reporting and contribution 
obligations.
(j) “Investigation” means the investigation commenced by the Bureau’s Letters of 
Inquiry to Telrite dated December 15, 2005,9 June 9, 2006,10 and November 8, 
2006,11 seeking to determine whether Telrite had violated, among other requirements, 
Sections 54.706 and 54.711 of the Commission’s rules by failing to fulfill the USF 
reporting and contribution obligations applicable to telecommunications carriers.12
(k) “LNP” means Local Number Portability.
(l) “NANP” means the North American Numbering Plan.
(m) “Parties” means Telrite Corporation and the Commission, each of which is a “Party.”
(n) “Rules” means the Commission’s regulations found in Title 47 of the Federal 
Regulations.
(o) “Telrite” or “the Company” means Telrite Corporation and its predecessors-in-
interest and successors-in-interest.
(p) “TRS” means Telecommunications Relay Services.
(q) “USF” means the Universal Service Fund.  
  
7 47 U.S.C. §§ 159,  225, 251(e)(2), 254(d).
8 47 C.F.R. §§ 1.1154, 1.1157, 52.17, 52.32, 54.706, 54.711, 64.604.
9 Letter from Hillary S. DeNigro, Deputy Chief, Investigations & Hearings Division, Enforcement Bureau, FCC, to 
Telrite Corporation (Dec. 15, 2005) (Initial LOI).
10 Letter from Hillary S. DeNigro, Deputy Chief, Investigations & Hearings Division, Enforcement Bureau, FCC, to 
Michael Geoffroy, Corporate Counsel, Telrite Corporation (June 9, 2006) (Second LOI).
11 Letter from Trent Harkrader, Deputy Chief, Investigations & Hearings Division, Enforcement Bureau, FCC, to 
Michael Geoffroy, Corporate Counsel, Telrite Corporation (November 8, 2006) (Third LOI).
12 47 C.F.R. §§ 54.706 and 54.711.
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II. BACKGROUND
A. Federal Regulatory Reporting and Contribution Obligations
3. Pursuant to Section 254(d) of the Act and Sections 54.706 and 54.711 of the Rules, 
telecommunications service providers that provide interstate telecommunications services are required to 
file annual and quarterly Telecommunications Reporting Worksheets (FCC Form 499-A and FCC Form 
499-Q) and contribute to the federal USF.13
4. Pursuant to Section 225(b)(1) of the Act and Section 64.604 of the Rules, providers of 
interstate telecommunications services are required to contribute to the TRS Fund.14
5. Pursuant to Section 251(e) of the Act and Sections 52.17 and 52.32 of the Rules, 
telecommunications service providers are required to contribute to the costs of establishing numbering 
administration and local number portability.15  
6. Pursuant to Section 9(a)(1) of the Act and Sections 1.1154 and 1.1157 of the Rules, 
interstate telecommunications carriers are required to pay regulatory fees.16
B. Investigation
7. Telrite is a Georgia-based toll reseller providing interstate and information services to 
residential and business customers nationwide, and is subject to the requirements discussed in paragraphs 
3 through 6, above.  Following Telrite’s purchase of Onestar Long Distance, Inc. in 2004, the Universal 
Service Administrative Company (USAC) referred Telrite to the Bureau for potential enforcement action, 
alleging that Telrite had failed to comply with the Commission’s USF contribution and reporting rules.  
The Bureau issued Letters of Inquiry to Telrite dated December 15, 2005,17 June 9, 2006,18 and November 
8, 2006,19 seeking information about Telrite’s compliance with its regulatory obligations.  Telrite 
submitted responses to the Bureau’s inquiries, and on July 10, 2006, Telrite admitted that it had failed to 
accurately report revenue data on its annual Form 499-A filed in March 2006.20
8. On April 17, 2008, the Commission released a Notice of Apparent Liability for Forfeiture 
& Order finding Telrite apparently liable for a forfeiture of $924,212.21 Telrite filed a Statement Seeking 
Reduction of Proposed Forfeiture on June 2, 2008.22
  
13 See 47 U.S.C. § 254(d); 47 C.F.R. §§ 54.706, 54.711.
14 See 47 U.S.C. § 225(b)(1); 47 C.F.R. § 64.604.
15 See 47 U.S.C. § 251(e); 47 C.F.R. §§ 52.17, 52.32.
16 See 47 U.S.C. § 159(a)(1); 47 C.F.R. §§ 1.1154, 1.1157.
17 See Initial LOI, n.5, supra.
18 See Second LOI, n.6, supra.
19 See Third LOI, n.7, supra.
20 Letter from Michael G. Geoffroy, Corporate Counsel, Telrite Corporation, to Christopher Shields, Enforcement 
Bureau, Federal Communications Commission (July 10, 2006).
21 Telrite Corporation, Notice of Apparent Liability for Forfeiture and Order, 23 FCC Rcd 7231(2008) (NAL).
22 Telrite Corporation’s Statement Seeking Reduction of Proposed Forfeiture (June 2, 2008).
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9. As of the Effective Date, Telrite has paid all invoiced amounts to the USF, TRS Fund, 
cost recovery mechanisms for NANP and LNP administration, and regulatory fees, as discussed above. 
III. TERMS OF AGREEMENT
10. Adopting Order.  The Parties agree that the provisions of this Consent Decree shall be 
subject to final approval by the Commission by incorporation of such provisions by reference in the 
Adopting Order.
11. Jurisdiction. Telrite agrees that the Commission has jurisdiction over it and the matters 
contained in this Consent Decree and has the authority to enter into and adopt this Consent Decree.
12. Effective Date; Violations.  The Parties agree that this Consent Decree shall become 
effective on the Effective Date.  Upon release, 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.
13. Termination of Investigation.  In express reliance on the covenants and representations 
in this Consent Decree and to avoid further expenditure of public resources, the Commission agrees to 
terminate its Investigation.  In consideration for the termination of said Investigation, Telrite agrees to the 
terms, conditions, and procedures contained herein.  The Commission further agrees that, in the absence 
of new material evidence, the Commission 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 new 
proceeding, formal or informal, or take any action on its own motion against Telrite concerning the 
matters that were the subjects of the Investigation. The Commission also agrees that 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 Telrite with respect to Telrite’s basic qualifications, including its character qualifications, to be a 
Commission licensee or hold Commission authorizations.
14. Compliance Plan. For purposes of settling the matters set forth herein, Telrite agrees to 
develop and implement a Compliance Plan to help ensure future compliance with the Communications 
Laws, including the Federal Regulatory Reporting and Contribution Rules, and with the terms and 
conditions of this Consent Decree.  The Compliance Plan must include, without limitation, the following 
components:  
(a) Compliance Officer. Within thirty (30) calendar days of the Effective Date, Telrite 
will designate a senior corporate manager with the requisite corporate and 
organizational authority to serve as a 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 Telrite complies with the terms and conditions of the Compliance Plan and this 
Consent Decree.  In addition to the general knowledge of the Communications Law 
necessary to discharge his/her duties under this Consent Decree, the Compliance 
Officer shall have specific knowledge of the Federal Regulatory Reporting and 
Contribution Rules.
(b) Compliance Manual. Within sixty (60) calendar days of the Effective Date, the 
Compliance Officer will develop and distribute a Compliance Manual to all Covered 
Employees.  The Compliance Manual shall explain Communications Laws that apply 
to Telrite and the Federal Regulatory Reporting and Contribution Rules, including (i) 
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the payment of annual regulatory fees; (ii) contributions to the USF and TRS Fund; 
(iii) contributions to cost-recovery mechanisms for NANP and LNP administration; 
and (iv) the submission of information as set forth on the Telecommunications 
Reporting Worksheets.  The Compliance Manual will also set forth a schedule of filing 
and payment dates associated with these regulatory reporting and contribution 
obligations.  Telrite will create compliance notifications that alert Telrite personnel to 
upcoming filing and payment dates.  The Compliance Manual will require personnel to 
contact Telrite’s Compliance Officer, and if appropriate, regulatory legal counsel, with 
any questions or concerns that arise with respect to Telrite’s federal regulatory 
reporting and contribution obligations.  Telrite shall periodically review and revise the 
Compliance Manual as necessary to ensure that the information set forth therein 
remains current and accurate.  Telrite shall distribute any revisions to the Compliance 
Manual promptly to Covered Employees. 
(c) Compliance Training Program. Telrite shall establish and conduct a training 
program on compliance with the Federal Regulatory Reporting and Contribution Rules 
and other Communications Laws.  As part of the Compliance Training Program, 
Covered Employees shall be advised of Telrite’s obligation to report any 
noncompliance with the Regulatory Reporting and Contribution Rules under paragraph 
15 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 
Effective Date shall be trained within thirty (30) calendar days after the date such 
person becomes a Covered Employee.  Telrite 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.  
15. Reporting Noncompliance.  Telrite shall report any noncompliance with the Federal 
Regulatory Reporting and Contribution 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 Telrite 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 Telrite has taken or will take to prevent the recurrence of any such noncompliance.  All 
reports of noncompliance shall be submitted to the Chief, Investigations and Hearings Division, 
Enforcement Bureau, Federal Communications Commission, Room 4-C330, 445 12th Street, S.W. 
Washington, D.C. 20554, with a copy submitted electronically to Theresa Z. Cavanaugh at 
Terry.Cavanaugh@fcc.gov and to Mindy Littell at Mindy.Littell@fcc.gov.  The reporting obligations set 
forth in this paragraph 15 of the Consent Decree shall expire thirty-six (36) months after the Effective 
Date.
16. Compliance Reports.  Telrite shall file compliance reports with the commission ninety 
(90) calendar days after the effective date, twelve (12) months after the Effective Date, and 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 Telrite’s efforts during 
the relevant period to comply with the terms and conditions of this Consent Decree 
and the Federal Regulatory Reporting and Contribution Rules.  In addition, each 
Compliance Report shall include a certification by the Compliance Officer, as an 
agent of and on behalf of Telrite, stating that the Compliance Officer has personal 
knowledge that Telrite (i) has established and implemented the Compliance Plan and 
(ii) is not aware of any instances of noncompliance with the terms and conditions of 
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this Consent Decree, including the reporting obligations set forth in paragraph 15 of 
this Consent Decree.
(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 
Rules23 and be subscribed to as true under penalty of perjury in substantially the form 
set forth in Section 1.16.
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance 
Officer, as an agent of and on behalf of Telrite, 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 Telrite 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 Telrite has taken or will take to prevent the recurrence of 
any such noncompliance, including the schedule on which such preventive action will 
be taken.
(d) All Compliance Reports shall be submitted to the Chief, Investigations & Hearings 
Division, Enforcement Bureau, Federal Communications Commission, 445 12th 
Street, S.W., Washington, D.C. 20554, with a copy submitted electronically to 
Theresa Z. Cavanaugh at Terry.Cavanaugh@fcc.gov and to Mindy Littell at 
Mindy.Littell@fcc.gov.
(e) Termination Date. Unless state otherwise, the requirements of this Compliance Plan 
shall expire thirty-six (36) months after the Effective Date.
17. 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 Act24 against Telrite 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 complaint 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 Telrite with the Communications 
Laws.
18. Voluntary Contribution.  Telrite agrees that it will make a voluntary contribution to the 
United States Treasury in the amount of five hundred and twenty-five thousand dollars ($525,000).  The 
contribution will be made within thirty (30) calendar days after the Effective Date of the Adopting Order.  
The payment 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 979088, St. Louis, MO 63197-9000.  Payment by overnight mail may be sent to U.S. Bank –
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101.  
Payments by wire transfer may be made to ABA Number 021030004, receiving bank Federal Reserve 
Bank of New York, and account number 27000001.  An FCC Form 159 (Remittance Advice) must be 
submitted with the payment. When completing the FCC Form 159, enter the NAL/Account number in 
block number 23A (call sign/other ID), and enter the letters “FORF” in block number 24A (payment type 
code).  Telrite will also send electronic notification to Theresa Z. Cavanaugh at 
  
23 47 C.F.R. § 1.16.
24 See 47 U.S.C. § 208.
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Terry.Cavanaugh@fcc.gov, Pamela S. Kane at Pamela.Kane@fcc.gov, and Mindy Littell at 
Mindy.Littell@fcc.gov on the date said payment is made. 
19. Waivers.  Telrite 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 Commission issues the Adopting Order adopting the 
Consent Decree without change, addition, modification, or deletion.  Telrite 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 Telrite nor the Commission shall contest the validity of the Consent Decree or 
the Adopting Order, and Telrite shall waive any statutory right to a trial de novo.  Telrite hereby agrees to 
waive any claims it may otherwise have under the Equal Access to Justice Act,25 relating to the matters 
addressed in this Consent Decree.
20. 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. 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 Telrite does not expressly 
consent) that provision will be superseded by such Commission rule or order.
22. Successors and Assigns. Telrite agrees that the provisions of this Consent Decree shall 
be binding on its successors, assigns, and transferees.  
23. Final Settlement. The Parties agree and acknowledge that this Consent Decree shall 
constitute a final settlement between the parties.  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 requirements of the Communications Laws.  
24. Modifications. This Consent Decree cannot be modified without the advance written 
consent of both Parties.
25. 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.
26. Authorized Representative.  The individual signing this Consent Decree on behalf of 
Telrite represents and warrants that he is authorized by Telrite to execute this Consent Decree and to bind 
Telrite to the obligations set forth herein.  The FCC signatory represents that she is signing this Consent 
Decree in her official capacity and that she is authorized to execute this Consent Decree.
  
25 See 5 U.S.C. § 504; 47 C.F.R. Part 1, Subpart K.
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27. 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.
________________________________
P. Michele Ellison
Chief
Enforcement Bureau 
Federal Communications Commission
________________________________
Date
________________________________
R. P. McFarland
Chief Executive Officer
Telrite Corporation
________________________________
Date