Source: http://www.fcc.gov/document/224m-penalty-proposed-against-telrite-corp-lifeline-violations?fontsize=
Timestamp: 2014-07-14 08:27:27
Document Index: 450165409

Matched Legal Cases: ['§ 54', '§ 54', '§ 254', '§ 214', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54', '§ 54']

$22.4M Penalty Proposed Against Telrite Corp for Lifeline Violations | FCC.gov
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$22.4M Penalty Proposed Against Telrite Corp for Lifeline Violations
FCC 13-154
File No.: EB-IHD-13-000106741 )
Telrite Corporation d/b/a Life Wireless
NAL/Acct. No.: 201432080013
FRN: 0007960420
In this Notice of Apparent Liability for Forfeiture (NAL), we continue our commitment to combatting waste, fraud, and abuse in the Lifeline program (Lifeline) by taking action and proposing monetary forfeitures against a company that apparently has ignored our rules and exploited a program dedicated to providing low-income Americans with basic telephone service. Specifically, we find that Telrite Corporation d/b/a Life Wireless (Telrite) apparently willfully and repeatedly violated Sections 54.407, 54.409, and 54.410 of the Commission’s rules2 by requesting and/or receiving support from the Lifeline program of the Universal Service Fund (USF or Fund) for ineligible subscriber lines between the months of June through August 2012, November and December 2012, and February through April 2013. Based on our review of the facts and circumstances surrounding these apparent violations, we propose a monetary forfeiture in the amount of twenty-two million, three hundred ninety-nine thousand, seven hundred sixty-one dollars ($22,399,761). II.
Lifeline Service. Lifeline is part of the USF and helps qualifying consumers have the opportunities and security that phone service brings, including being able to connect to jobs, family members, and emergency services.3 Lifeline service is provided by Eligible Telecommunications Carriers (ETCs) designated pursuant to the Communications Act of 1934, as amended (Act).4 An ETC may seek and receive reimbursement from the USF for revenues it forgoes in providing the discounted services to eligible customers in accordance with the rules.5 Section 54.403(a) of the Commission’s rules specifies that an ETC may receive $9.25 per month for each qualifying low-income consumer receiving Lifeline 1 This investigation, initiated under file no. EB-13-IH-0202, was subsequently assigned to file no. EB-IHD-13-00010674. 2 47 C.F.R. §§ 54.407, 54.409, 54.410.3 Lifeline and Link Up Reform and Modernization, Report and Order and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656, 6662–67, paras. 11–18 (2012) (Lifeline Reform Order); see also 47 C.F.R. §§ 54.400–54.422.4 47 U.S.C. § 254(e) (providing that “only an eligible telecommunications carrier designated under section 214(e) of this title shall be eligible to receive specific Federal universal service support”); 47 U.S.C. § 214(e) (prescribing the method by which carriers are designated as ETCs).5 47 C.F.R. § 54.403(a).
The Commission’s rules further prohibit an ETC from seeking reimbursement for providing Lifeline service to a subscriber unless the ETC has confirmed the subscriber’s eligibility to 6 Lifeline provides a single discounted wireline or wireless phone service to each qualifying low-income consumer’s household. See 47 C.F.R. § 54.401; see also 47 C.F.R. § 54.400(h) (defining “household” as “any individual or group of individuals who are living together at the same address as one economic unit”); Lifeline Reform Order, 27 FCC Rcd at 6760, para. 241 (noting that the costs of wireless handsets are not supported by the Lifeline program).7 See 47 C.F.R. § 54.403(a). Tribal lands include any federally recognized Indian tribe’s reservation, pueblo, or colony, including former reservations in Oklahoma. See 47 C.F.R. § 54.400(e).8 See 47 C.F.R. § 54.403(a); Lifeline Reform Order, 27 FCC Rcd at 6681, para. 53.9 See 47 C.F.R. §§ 54.400–54.422.10 47 C.F.R. § 54.407(a).11 47 C.F.R. § 54.407(b). In 2011, the Commission took action to address potential waste, fraud, and abuse in the Lifeline program by preventing duplicate payments for multiple Lifeline-supported services to the same individual. See Lifeline and Link Up Reform and Modernization, Report and Order, 26 FCC Rcd 9022–23, 9026, para. 1 (2011) (Lifeline Duplicates Order); see also Lifeline and Link Up Refor