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 NEWS  News  Media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Cir.  1974). 
 over… 
 FOR  IMMEDIATE  RELEASE  NEWS  MEDIA  CONTACT: 
 July  27,  2000  John  Winston  (202)  418-  7450 


 FEDERAL  COMMUNICATIONS  COMMISSION  PROPOSES  FINES  AGAINST 
 INTELLICALL  OPERATOR  SERVICES  AND  MATRIX  TELECOM,  INC.  FOR  FAILURE  TO  MAKE  REQUIRED  UNIVERSAL  SERVICE  CONTRIBUTIONS 


 Washington,  D.  C.  --  Today,  the  Federal  Communications  Commission  (FCC)  notified 
 Intellicall  Operator  Services  (Intellicall)  and  Matrix  Telecom,  Inc.  (Matrix)  that  they  are 
 apparently  liable  for  forfeitures  of  $198,000  and  $113,000,  respectively.  The  Commission 
 charged  both  companies  with  violating  statutory  and  regulatory  requirements  that  interstate 
 telecommunications  providers  make  certain  contributions  to  foster  universal  service.  In  today’s 
 notices,  the  Commission  directs  each  carrier  to  either  pay  the  proposed  forfeiture  or  show  why 
 the  forfeiture  should  be  reduced  or  not  imposed,  within  30  days. 


 In  the  Telecommunications  Act  of  1996  (the  “Act”),  Congress  mandated  that  the 
 Commission  establish  mechanisms  to  collect  contributions  to  preserve  and  advance 
 universal  service.  In  1997,  the  Commission  authorized  the  Universal  Service 
 Administrative  Company  (USAC)  to  perform  the  administrative  tasks  as  well  as  the 
 billing  and  collections  functions  necessary  for  the  universal  service  program.  Both 
 Intellicall  and  Matrix  were  billed  for  universal  service  contributions  by  USAC.  Although 
 both  carriers  made  some  contributions  to  the  fund,  those  payments  were  neither  timely 
 nor  in  the  amounts  specified  by  USAC. 


 The  Commission  oversees  the  administration  of  the  universal  service  program  and 
 imposes  sanctions  on  carriers  that  fail  to  meet  their  full  obligations.  The  Commission  found  the 
 carriers  apparently  liable  for  their  failure  to  make  universal  service  contributions  in  two  months. 
 In  determining  the  proposed  forfeiture  amounts  for  Matrix  and  Intellicall,  the  Commission  took 
 into  account  the  amounts  of  the  unpaid  contributions  as  well  as  the  fact  both  carriers  had  made 
 some  contributions  to  the  Universal  Service  Fund  and  had  submitted  plans  to  become  current  on 
 their  obligations. 


 Action  by  the  Commission,  July  21,  2000,  by  Notices  of  Apparent  Liability  for  Forfeiture 
 (FCC  00-  261  and  FCC  00-  262). 


 File  Nos.  EB-  00-  IH-  0055  and  EB-  00-  IH-  0057 
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 -  FCC  – 
 Enforcement  Bureau  Contacts:  John  Winston  at  (202)  418-  7450 
 William  Knowles-  Kellett  at  (717)  338-  2505 
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