AT&T (NYSE: T) and the FCC resolved an investigation into whether the telecom broke the rules for two federal broadband subsidy programs, the Broadband Benefit Program (EBB) and Affordable Connectivity Program (ACP). To settle the case, AT&T agreed to pay nearly $2.3 million.
It also agreed to implement enhanced compliance measures in connection with its participation in a re-funded ACP or successor program. In exchange, the FCC dropped the investigation.
AT&T’s settlement value includes a civil penalty of a little over $1.9 million and repayment to the United States Treasury in the amount of $378,922. As part of a Consent Decree, the Commission will not hold a hearing to question AT&T’s basic qualifications to hold an FCC license or authorization.
The FCC says in the Consent Decree that from at least May 2021 through December 2023, AT&T sought and received EBB or ACP funding for subscribers that were improperly enrolled. The telecom “enrolled 3,912 subscribers with incorrect and/or invalid identifying information by repeatedly using the same nonsubscriber benefit qualifying persons to enroll multiple subscribers.” The FCC said despite the improper duplicate information, AT&T certified in its reimbursement requests to the Commission and the company that administers the program that it was in compliance with the agency’s rules. The FCC says the certifications were made under a penalty of perjury.
Another problem was from at least May 2021 through November 2023, AT&T in-store sales representatives were associated with EBB and ACP enrollments for at least 220 of incorrectly enrolled subscribers, noted the Enforcement Bureau. They did not obtain a required unique Representative Accountability Database identification number.
Providers that don’t assess and collect a monthly fee after applying the ACP benefit may only be reimbursed when the subscriber has used the service at least once every 30 days, or “cured” their non-use during a 15-day period. In October and November 2023, AT&T claimed reimbursement for 3,289 ACP subscribers despite those subscribers having more than 45 consecutive days of non-use, according to the bureau.
The agency says for each infraction, AT&T certified it was following the rules under a penalty of perjury. In the Consent Decree, AT&T admits the facts of the investigation are true and “makes no other admissions,” according to the document.
Within 30 days, AT&T must designate a senior corporate manager to serve as a compliance officer. AT&T agrees within 75 days after the effective date, or, 75 days after the FCC implements a re-funded ACP or successor program, to develop and implement a compliance plan and re-train impacted staff or third parties.
By Leslie Stimson, Inside Towers Washington Bureau Chief
Reader Interactions