The Prepaid Press - July 15, 2008 - (Page 20) CALLING CARDS July 15 · 2008 - 20 Supreme Court Rules in Favor of APCC from page 19 views by lower Courts, and even state Courts, as to whether standing is met in this instance, not conclusiveness. Therefore, their final opinion was that on the merits the APCC failed to meet is standing for collection of DAC claims. However, they were the minority in this instance by one vote. Now as to this decision’s impact. The APCC will continue to use the federal Courts to enforce the DAC for claims assigned to them by payphone providers under the Telecom Act. For those whose prepaid services have access through payphones, it may be wise to prepare your DAC reporting and invest in DAC audits where and when it may be necessary. Defense and accounting of the DAC are now more pivotal than ever for prepaid providers. Clearly, payphone providers will continue to aggregate their claims against carriers who do not compensate them, and it is the carrier’s responsibility to ensure that payphone providers are compensated the DAC. Stronger collection efforts by the APCC against prepaid providers who owe DAC will likely result in the near future as a direct result of this decision. Why not, the Supreme Court has given the blessing that they can. As to an issue raised in my prior Legal Line about the implications of this decision on the Telephone Consumer Protection Act of 1991, I still have concerns that this decision may result in a spike in such claims, as attorneys lead the charge to recover for such violations – the new telecom equivalent of “slip & fall” cases. As I stated before, there are attorneys who have built entire legal practices prosecuting such cases on volume level. This potential increase in such claims may place the lower Courts in a position where they will have to interpret not only the Sprint v APCC case, but this case in connection to other types of Telecom Act violations. I see this as problematic. This can lead to even more conflicting opinions and rulings when it comes to private claims under the Telecom Act. Because the Court’s decision addressed only the precise question of DAC and the APCC, there is room for interpretation. Other violations under the Telecom Act may be now wide open for further interpretation that the assignment of those claims can be done in a similar fashion to the way the APCC functions in collection of the DAC. It is definitely a plaintiff’s argument for federal standing now. We must wait and see what happens. Time and further Court review of this decision will ultimately tell. Good Luck and Success in the Industry. Edward Maldonado is a telecommunication regulatory attorney and consultant. He can be reached at eam@maldonado-group.com. Case Summary Supreme Court Case # 07-552 Sprint Communications Co. L.P. v. APCC Services, Inc. Argued on April 21, 2008 & Decided June 23, 2008. 489 F. 3d 1249, Affirmed: Vote 5-4 Majority. Majority Justices: Justice Steven B. Beyer; Justice John Paul Stevens; Justice David Hackett Souter; Justice Ruth Bader Ginsberg; Justice Anthony M. Kennedy. Dissenting Justices: Chief Justice John G. Roberts, Jr.; Justice Antonin Scalia, Justice Clarence Thomas, Justice Samuel Anthony Alito, Jr. Cordia Completes Purchase of TSI Prepaid Provides New Distribution Channel and Diversifies Business WINTER GARDEN, FL (June 5, 2008) Cordia Corporation (OTCBB: CORG), a provider of traditional CLEC and Voice over Internet Protocol (VoIP) technologies has announced that its subsidiary, Cordia Prepaid Corp., has completed an asset purchase agreement with TSI Prepaid LLC. The purchase by Cordia is expected to boost its revenues to approximately $90 million and add a retail distribution network that reaches approximately 7,000 locations through which it plans to offer its domestic and international telecom products. Mohammed Markatia, who is the founder and CEO of TSI Prepaid LLC, will be joining Cordia as the President and CEO of its new business unit, Cordia Prepaid Corp. In addition, Peter M. Vita, one of the founders of PT-1 Communications, Inc., will join Cordia and head up the Cordia Advanced Product Services division. Vita was the former President and a Director of PT-1 Communications Inc., which was founded in 1995 and sold in 1999 after it had grown to more than $500 million in revenues. “We are pleased to announce the closing of this strategic transaction,” said Kevin Griffo, President of Cordia Corporation. “This important acquisition will both expand and diversify our revenue stream and add an extensive retail distribution channel. Marketing through retail locations will allow us to greatly increase the number of potential customers we can reach with our products and services.” Markatia stated, “As we join Cordia’s team, we are taking a giant step in the evolution of our business. With network, service development and customer service operations throughout the U.S., Asia, Brazil, India and the Philippines, Cordia can provide us with unique opportunities to create VoIP, local wireline, long distance, wireless and calling card products that we can market through our distribution network. In addition, with Cordia’s support, we look forward to rapidly expanding our domestic distribution network and establishing our distribution model in selective international markets.” Source: Cordia Corporation (www.cordiacorp.com) CTIA WIRELESS I.T. & Entertainment 2008 is the largest wireless data event in the internet, wireless and telecommunications industries. With a focus on wireless data applications, software development, network architecture and solutions, CTIA WIRELESS I.T. & Entertainment 2008 is where professionals across various industries see first-hand how wireless data technology is applied to a multitude of business solutions. It’s more than just the next generation of wireless data… it’s how you use it that makes it powerful. The Next Generation of Wireless Data September 9 Partner Seminars September 10-12 Exhibit Floor, Keynotes, Sessions & Partner Conferences Moscone West San Francisco, CA www.ctiashow.com http://www.ctiashow.com http://www.ctiashow.com http://www.cordiacorp.com
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