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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                  )                               
                                                                  
     In the Matter of             )    File Number: EB-06-SJ-024  
                                                                  
     Carnival Cruise Lines Inc.   )   NAL/Acct. No. 200732680001  
                                                                  
     San Juan, Puerto Rico        )               FRN 0015642390  
                                                                  
                                  )                               


                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Released: October 24, 2006

   By the Resident Agent, San Juan Field Office, South Central Region,
   Enforcement Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
       that Carnival Cruise Lines ("Carnival") apparently willfully and
       repeatedly violated Section 301 of the Communications Act of 1934, as
       amended ("Act"), by operating unlicensed radio transmitters. We
       conclude, pursuant to Section 503(b) of the Act, that Carnival is
       apparently liable for a forfeiture in the amount of twenty thousand
       dollars ($20,000).

   II. BACKGROUND

    2. In response to a complaint of interference, on May 8, 2006, an agent
       from the Commission's San Juan Office of the Enforcement Bureau ("San
       Juan Office") monitored radio transmissions on the PCS F Block band
       (1.890 GHz to 1.895 GHz) at the San Juan, Puerto Rico waterfront. The
       agent, using direction finding techniques, located the source of the
       transmissions to the Carnival cruise ship Triumph docked at the San
       Juan harbor. The signals transmitted from the Triumph could be clearly
       received from at least 300 feet from the ship. A search of the
       Commission's databases revealed no authorization for the Carnival
       Triumph to operate on these frequencies in the United States and its
       territories.

    3. On June 18, 2006, an agent from the San Juan Office monitored radio
       transmissions on the PCS F Block band at the San Juan waterfront. The
       agent, using direction finding techniques, located the source of the
       transmissions to the Carnival cruise ship Destiny docked at the San
       Juan harbor. The signals transmitted from the Destiny could be clearly
       received from at least 700 feet from the ship. A search of the
       Commission's databases revealed no authorization for the Carnival
       Destiny to operate on these frequencies in the United States and its
       territories.

    4. On June 22, 2006, an agent from the San Juan Office monitored radio
       transmissions on the PCS F Block band at the San Juan waterfront. The
       agent, using direction finding techniques, located the source of the
       transmissions to the Carnival cruise ship Elation docked at the San
       Juan harbor. The signals transmitted from the Elation could be clearly
       received from at least 700 feet from the ship. A search of the
       Commission's databases revealed no authorization for the Carnival
       Elation to operate on these frequencies in the United States and its
       territories. The agent was invited to board the Elation, where he was
       able to run tests with the Elation's Electrical Officer. The tests
       showed that the interfering signals were generated by the ship's
       internal Cellular System. The Cellular System consisted of over one
       hundred hand sets and a mobile telephone system. At the time of the
       inspection, the Elation's Electrical Officer could not produce a
       license to operate a Cellular System or these transmitters in the
       United States and its territories. He also stated that the system had
       been installed on the Elation about two years ago. He mentioned that
       most of Carnival's ships used the same system. He was warned that
       unlicensed operation of the ship's internal Cellular System in the
       United States and its territories violated Section 301 of the Act,
       that operation of the Cellular System was creating interference, and
       that operations should cease.

    5. On September 14, 2006, an agent from the San Juan Office monitored
       radio transmissions on the PCS F Block band at the San Juan
       waterfront. The agent, using direction finding techniques, again
       located the source of the transmissions to the docked Carnival cruise
       ship Elation. The signals transmitted from the Elation could be
       clearly received from at least 778 feet from the ship. A search of the
       Commission's databases revealed no authorization for the Carnival
       Elation to operate in these frequencies in the United States and its
       territories.

    6. On September 17, 2006, an agent from the San Juan Office monitored
       radio transmissions on the PCS F Block band at the San Juan
       waterfront. The agent, using direction finding techniques, again
       located the source of the transmissions to the docked Carnival cruise
       ship Destiny. The signals transmitted from the Destiny could be
       clearly received from at least 778 feet from the ship. A search of the
       Commission's databases revealed no authorization for the Carnival
       Destiny to operate in these frequencies in the United States and its
       territories.

   III. DISCUSSION

    7. Section 503(b) of the Act provides that any person who willfully or
       repeatedly fails to comply substantially with the terms and conditions
       of any license, or willfully or repeatedly fails to comply with any of
       the provisions of the Act or of any rule, regulation or order issued
       by the Commission thereunder, shall be liable for a forfeiture
       penalty. The term "willful" as used in Section 503(b) has been
       interpreted to mean simply that the acts or omissions are committed
       knowingly. The term "repeated" means the commission or omission of
       such act more than once or for more than one day.

    8. Section 301 of the Act requires that no person shall use or operate
       any apparatus for the transmission of energy or communications or
       signals by radio within the United States except under and in
       accordance with the Act and with a license.  The Act specifically
       defines within the United States as transmissions or communications
       from one place within a Territory: to another place in the same
       Territory; to another State, Territory or possession of the United
       States; or to any place in a foreign country or to any vessel. Agents,
       using direction finding techniques, determined that Carnival operated
       radio transmitters on PCS F Block frequencies without a license from
       various cruise ships while docked at the San Juan harbor on May 8,
       June 18 and 22, September 14, and 17, 2006. On June 22, 2006, Carnival
       was warned orally that operation of a radio station without a license
       violates the Rules and the Act and that its operation was causing
       harmful interference. Based on the evidence before us, we find that
       Carnival apparently willfully and repeatedly violated Section 301 of
       the Act by operating radio transmission apparatus without a license on
       May 8, June 18, June 22, and September 14, and 17, 2006.

    9. Pursuant to The Commission's Forfeiture Policy Statement and Amendment
       of Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines,
       ("Forfeiture Policy Statement") and Section 1.80 of the Rules, the
       base forfeiture amount for operation without an instrument of
       authorization is $10,000. In assessing the monetary forfeiture amount,
       we must also take into account the statutory factors set forth in
       Section 503(b)(2)(D) of the Act, which include the nature,
       circumstances, extent, and gravity of the violation, and with respect
       to the violator, the degree of culpability, any history of prior
       offenses, ability to pay, and other such matters as justice may
       require. Given the number of handsets in use on each cruise ship, the
       repeated nature of the violations despite an oral warning, and the
       commercial application for the unlicensed activity, we believe it
       appropriate to increase the forfeiture amount above the base
       forfeiture. Applying the Forfeiture Policy Statement, Section 1.80,
       and the statutory factors to the instant case, we conclude that
       Carnival is apparently liable for a $20,000 forfeiture

   IV. ORDERING CLAUSES

   10. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended, and Sections 0.111, 0.311 and
       1.80 of the Commission's Rules, Carnival Cruise Lines is hereby
       NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE in the amount of
       twenty thousand dollars ($20,000) for violations of Section 301 of the
       Act.

   11. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the
       Commission's Rules within thirty days of the release date of this
       Notice of Apparent Liability for Forfeiture, Carnival Cruise Lines
       SHALL PAY the full amount of the proposed forfeiture or SHALL FILE a
       written statement seeking reduction or cancellation of the proposed
       forfeiture.

   12. Payment of the forfeiture 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 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.

   13. The response, if any, must be mailed to Federal Communications
       Commission, Enforcement Bureau, South Central Region, San Juan Field
       Office, Room 762, Federal Building, San Juan, Puerto Rico 00918, and
       must include the NAL/Acct. No. referenced in the caption.

   14. The Commission will not consider reducing or canceling a forfeiture in
       response to a claim of inability to pay unless the petitioner submits:
       (1) federal tax returns for the most recent three-year period; (2)
       financial statements prepared according to generally accepted
       accounting practices ("GAAP"); or (3) some other reliable and
       objective documentation that accurately reflects the petitioner's
       current financial status. Any claim of inability to pay must
       specifically identify the basis for the claim by reference to the
       financial documentation submitted.

   15. Requests for payment of the full amount of this Notice of Apparent
       Liability for Forfeiture under an installment plan should be sent to:
       Associate Managing Director - Financial Operations, Room 1A625, 445
       12th Street, S.W., Washington, D.C. 20554.

   16. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture shall be sent by Certified Mail, Return Receipt
       Requested, and regular mail, to Carnival Cruise Lines, San Juan,
       Puerto Rico.

   FEDERAL COMMUNICATIONS COMMISSION

   William Berry

   Resident Agent

   San Juan Field Office

   South Central Region

   Enforcement Bureau

   47 U.S.C. S 301.

   47 U.S.C. S 503(b).

   The agent measured the relative signal strength of the transmissions from
   the Triumph to be 15 dB above the noise floor at a location at least 300
   feet from the transmitters.

   Section 15.1(b) of the Commission's Rules ("Rules") states that the
   operation of an intentional or unintentional radiator that is not in
   accordance with the regulations in this part must be licensed. 47 C.F.R. S
   15.1(b). Section 15.5(b) states that intentional radiators operating under
   Part 15 must not cause any harmful interference to licensed users.
   Carnival's operation of its transmitters caused harmful interference to
   the licensee of the PCS F Block band. Therefore, it can not operate these
   transmitters as non-licensed intentional radiators pursuant to Part 15.

   The agent measured the relative signal strength of the transmissions from
   the Destiny to be 15 dB above the noise floor at a location at least 700
   feet from the transmitters.

   The agent measured the relative signal strength of the transmissions from
   the Elation to be 15 dB above the noise floor at a location at least 700
   feet from the transmitters.

   Stations in the Public Mobile Services, including Cellular Services, must
   be operated only in accordance with a valid authorization issued by the
   Commission. 47 C.F.R. S 22.3.

   The resident agents found no evidence that the equipment was certified for
   use in the United States. Thus, even if Carnival did not cause harmful
   interference to a licensed user, it could not claim its operation fell
   under Part 15 of the Rules, because it was not using equipment certified
   for Part 15 use. See 47 C.F.R. S 15.201(b).

   The agent measured the relative signal strength of the transmissions from
   the Elation to be 10 dB above the noise floor at a location at least 778
   feet from the transmitters.

   The agent measured the relative signal strength of the transmissions from
   the Destiny to be 13 dB above the noise floor at a location at least 778
   feet from the transmitters.

   Section 312(f)(1) of the Act, 47 U.S.C. S 312(f)(1), which applies to
   violations for which forfeitures are assessed under Section 503(b) of the
   Act, provides that "[t]he term 'willful', when used with reference to the
   commission or omission of any act, means the conscious and deliberate
   commission or omission of such act, irrespective of any intent to violate
   any provision of this Act or any rule or regulation of the Commission
   authorized by this Act...." See Southern California Broadcasting Co., 6
   FCC Rcd 4387 (1991).

   Section 312(f)(2) of the Act, 47 U.S.C. S 312(f)(2), which also applies to
   violations for which forfeitures are assessed under Section 503(b) of the
   Act, provides that "[t]he term 'repeated', when used with reference to the
   commission or omission of any act, means the commission or omission of
   such act more than once or, if such commission or omission is continuous,
   for more than one day."

   47 U.S.C. S 301.

   12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999); 47 C.F.R.
   S1.80.

   47 U.S.C. S 503(b)(2)(D).

   47 U.S.C. SS 301, 503(b); 47 C.F.R. SS 0.111, 0.311, 1.80.

   See 47 C.F.R. S 1.1914.

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission

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   Federal Communications Commission