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Enforcement Actions Against Universal Service Scofflaws Continue

The FCC continues to step up its enforcement efforts against service providers who do not make timely and appropriate contributions into the federal Universal Service Fund (USF), or to comply with FCC provider registration and filing requirements that establish whether and to what extent the provider is required to make USF contributions.

Since July 2005, the FCC has imposed or proposed penalties of over $5 million against telecommunications providers for alleged noncompliance with these rules. For example, on Oct. 31, the FCC issued Notices of Apparent Liability to two providers, proposing forfeiture penalties of $462,638 and $236,774, respectively. In these Notices, which are typical of recent FCC actions, the Commission proposes penalties for (1) $100,000 for failing to register with the FCC, as required by section 64.1195(a) of the FCC’s rules; (2) $50,000 for each failure to timely file periodic Telecommunications Reporting Worksheets as required by section 54.711(a) of the rules; and (3) varying penalties for failing to make contributions to the federal USF under section 224(d) of the Communications Act and section 54.706 of the rules.