The FCC proposed a $1 million fine against an Oklahoma interstate telecom for missing document filing deadlines and providing inaccurate information to the company that administers the Universal Service Fund for the Commission. In a Notice of Apparent Liability for Forfeiture, the agency said Enhanced Communications Group, LLC (Enhanced) failed to comply with a Universal Service Administrative Company (USAC) audit, and failed repeatedly to respond to USAC’s directives to provide documentation supporting information reported in the company’s annual worksheets for 2017 through 2022. The telecom also provided inaccurate annual worksheets for the same years, according to the agency.
The USAC relies on the accuracy of information in worksheets periodically filed by telecoms to determine the service providers’ USF contribution obligations. The FCC says failure to maintain and submit the required documentation requested by USAC to verify and audit the accuracy of information reported in worksheets undermines the Commission’s efforts to maintain the USF, Telecommunications Relay Service Fund, Local Number Portability, North American Numbering Plan, and federal regulatory fee contribution requirements.
Enhanced resells interstate and international telecommunications services. It says it provides “mobile communications services for voice and data, internet surfing services, traditional 1+ long distance services, web, cloud and data-based services.”
The USAC repeatedly tried to verify the accuracy of data reported in Enhanced’s annual worksheet filings for 2017 through 2022. USAC tried to verify “substantial decreases in certain interstate, international and total revenues; revenues from alleged reseller customers; non-telecommunications revenues; and revenues collected from customers to recover the company’s USF contributions,” notes the FCC. The company “repeatedly failed to respond or submitted non-responsive documents, unsubstantiated claims, or late responses,” preventing USAC from verifying the accuracy of Enhanced’s worksheets over a nearly five-and-a-half year period.
At one point, the company’s consultant informed USAC that he refused to use USAC’s secure file sharing system and that USAC must email him the audit documents. Enhanced’s consultant said he refused to access the file-sharing platform because it involved using “an unsecured link to an unknown site,” according to the FCC.
When assessing a penalty, the Commission considers 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 such other matters as justice may require.”
The total fine includes $400,000 for Enhanced’s failures to respond to USAC directives to provide documentation supporting the company’s annual worksheets and $600,000 for failure to file accurate worksheets. Enhanced has 30 days to pay the fine or seek to have it reduced or canceled.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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