Enforcement Action Overview
On June 20, 2014, the Federal Communications Commission's Enforcement Bureau released a Forfeiture Order (DA 14-849) assessing a $39,000 penalty against Indigo Wireless, Inc. The action affirms a Notice of Apparent Liability for Forfeiture issued on December 30, 2010.
The penalty penalizes Indigo Wireless for willful and repeated violations of Section 20.19(c)(3)(ii) of the Commission's rules. Specifically, the carrier failed to offer the required number or percentage of digital wireless handset models that met or exceeded the M3 radio frequency interference rating for hearing aid compatibility during nine months of the 2009 reporting period.
- Entity: Indigo Wireless, Inc.
- File Number: EB-SED-13-00009306 (formerly EB-10-SE-113)
- NAL/Account Number: 201132100018
- FRN: 0009120999
- Forfeiture Amount: $39,000
- Governing Rule: 47 C.F.R. § 20.19(c)(3)(ii)
Indigo Wireless Defenses and FCC Rebuttal
In response to the initial notice, Indigo Wireless requested cancellation or reduction of the forfeiture. The company argued that it reasonably believed the Pantech c810 handset model was hearing aid-compatible based on internet sources and asserted that using official FCC databases was difficult. The Bureau rejected this argument, stating that the Pantech c810 was not hearing aid-compatible according to official Commission records and that reliance on third-party internet sites did not show sufficient diligence.
The Enforcement Bureau underscored that the Commission's Equipment Authorization System database serves as the authoritative source for equipment certified under Commission authority, indexing hearing aid compatibility ratings as reported in manufacturer test filings.
The Bureau also rejected arguments that the violation was not willful, explaining that Section 312(f)(1) and Section 503(b) do not require intent to violate the law. Additionally, Indigo Wireless's violation was repeated, which independently supports statutory forfeiture under Section 503(b)(1)(B).
- Months of Noncompliance: March through July 2009 and September through December 2009
- Handset Shortfall: Deficient by two handset models in December 2009
- Base Forfeiture Calculation: $30,000 ($15,000 base per model shortfall) plus upward adjustment for the extended duration of the violation
Rejection of Hardship and Compliance History Claims
The Bureau declined to reduce the forfeiture based on claims of overall compliance history, noting that a shortfall lasting nine months across the reporting period does not constitute an overall record of compliance.
Indigo Wireless also claimed the proposed fine would impose financial hardship. The Bureau denied this request, observing that Indigo Wireless failed to provide supporting documentation—such as three years of federal tax returns or standard financial statements—required to corroborate an inability to pay.
- Payment Deadline: Within 30 calendar days from the June 20, 2014 release date
- Enforcement Authority: Failure to pay may result in referral to the U.S. Department of Justice under Section 504(a) of the Communications Act