UPDATE Earlier this month, Colorado-based carrier Blanca Telephone Company went before the U.S. Court of Appeals for the Tenth Circuit regarding government grants received over a decade ago. A three-judge panel ruled that the carrier owes the FCC $6.75 million. According to a court filing, Blanca received “improperly claimed” subsidies from 2005 to 2010, via the Universal Service Fund (USF), an FCC financial support source for low-income households, funded through fees from telephone customers.
The FCC began investigating the carrier’s accounting practices in 2008, and identified overpayments based on improperly reported expenses related to mobile cellular services. The appeals court ruled that Blanca was only entitled to funds based on “plain old telephone service,” like basic landlines, not for mobile services.
Throughout the process, Blanca claimed the agency’s decision should be set aside for three reasons:
- it was barred by the relevant statute of limitations,
- it violated due process, and
- it was arbitrary and capricious.
Beginning in 2016, the Commission called for repayment of the USF funds, but Blanca fought that on appeal. The carrier was denied and again sought review in 2020, and was denied again. In front of the U.S. Court of Appeals for the Tenth Circuit, this latest effort, was three strikes for Blanca. The FCC can now pursue the collection of the $6.75 million from the rural telecom carrier through the Department of Justice.
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