WASHINGTON-The Federal Communications Commission has proposed fining InPhonic Inc. more than $819,000 for not registering as a telecommunications carrier and thus not making necessary payments for universal service, regulatory fees and the telecommunications relay service.
“In contrast to previous cases in which we have taken enforcement action for failure to satisfy universal service obligations, this case involves a carrier’s failure both to register and submit any telecommunications reporting worksheets from the time it commenced providing telecommunications services until it received a letter from the Enforcement Bureau-in this case, a period of over two years. We find InPhonic’s failure to discharge its federal reporting obligations to be particularly egregious,” said the commission.
InPhonic has 30 days either to pay the fine or appeal, but a spokesman for the company said it is working with FCC staff to resolve the situation.
“We were immediately responsive to them-within the hour of discovering the notice of apparent liability,” said Tripp Donnelly, InPhonic vice president of corporate communications. “We certainly do not believe because of our intent-there was no particular intention to not file and having paid to be current to date-that the fines are warranted. We will try to resolve the matter as quickly as possible.”
Donnelly gave a slightly different version of the events than the FCC. While InPhonic said it “self discovered and self reported” the apparent oversight in filing and paying the fees, the FCC said a March 2004 letter to InPhonic was a result of an audit of all resellers-the term used generically by the commission to include mobile virtual network operators.
InPhonic offers English and Spanish versions of its Liberty Wireless MVNO prepaid wireless service using the Sprint PCS network. InPhonic’s Liberty Wireless service provides customers with 1,000 anytime minutes for $45, including long distance and roaming. Viva Liberty, targeting Spanish-speaking U.S. consumers, launched in March.
