YOU ARE AT:CarriersAT&T fined $6.9M for overcharging low-income program

AT&T fined $6.9M for overcharging low-income program

AT&T will pay $6.9 million to the Federal Communications Commission for over-billing a program designed to help low-income households pay their phone bills.

An audit of AT&T revealed the carrier inaccurately billed the FCC after failing to remove customers who were no longer eligible for the Lifeline program in 2012 and 2013. The fine is a way for the FCC to collect the money owed to them from the overcharge.

As part of the punishment, AT&T will have to draft plans and instate compliance officers to make sure that the issue doesn’t happen again.

“American consumers trust that the companies [that] receive federal funds will use that money appropriately,” said Travis LeBlanc, chief of the FCC’s Enforcement Bureau. “We expect companies to be vigilant in protecting public funds and complying with FCC rules.”

The FCC also fined former AT&T subsidiary Southern New England Telephone $4 million for the same issue. SNET is now owned by Frontier Communications.

AT&T said the issue was an honest mistake, telling The Verge: “We discovered this issue in the course of an internal review, voluntarily reported it and reimbursed the Universal Service Fund about a year ago. We also have implemented process enhancements so this does not happen again.”

The FCC is currently in the process of overhauling the Lifeline program to give more low-income households access to the Internet in addition to phone service.

ABOUT AUTHOR

Joey Jackson
Joey Jacksonhttp://www.RCRWireless.com
Contributorjjackson@rcrwireless.com Joey Jackson is an editor and production manager at RCRWireless.com and RCRtv based in Austin, Texas. Before coming to RCR, Joey was a multimedia journalist for multiple TV news affiliates around the country. He is in charge of custom video production as well as the production of the "Digs," "Gigs," "How it works" and "Tower Stories" segments for RCRtv. He also writes daily about the latest developments in telecom and ICT news. An Oregon native, Joey graduated from the University of Oregon with a degree in journalism and communications. He enjoys telling the stories of the people and companies that are shaping the landscape of the mobile world. Follow him on Twitter at @duck_jackson.