Telecom Alert: $153K Fine over Recordkeeping Violations; Rip-and-Replace Updates Due; USF Contribution Factor; 900 MHz Applications Granted [Vol. XIX, Issue 38]

$153K Proposed Fine over Recordkeeping Violations

The FCC’s Enforcement Bureau issued a Notice of Apparent Liability last week against PayG, LLC (“PayG”) for failing to verify information with the Universal Service Administrative Company (“USAC”) and accurately maintain records with the FCC.  Between May 2019 and November 2020, PayG failed to provide documentation repeatedly requested by USAC to verify PayG’s Annual Worksheets.  Upon further investigation, the Commission also found that it filed inaccurate Annual Worksheets and failed to maintain current contact information in the FCC’s CORES system.  The FCC proposed a forfeiture of $153,000.  For more information, please contact Wes Wright (wright@khlaw.com; 202.434.4239).

Rip-and-Replace Updates Due

Last week, the FCC issued a Public Notice reminding recipients in the Secure and Trusted Communications Networks Reimbursement Program (the “Program”) of their obligation to file their initial status updates with the Commission.  The status updates must be filed every 90 days as of the date the application was improved and inform the Commission about the work of the recipient to permanently remove, replace, and dispose of covered communications equipment or services.  Since the initial applications were approved on July 15, 2022, the status updates are due on October 13, 2022.  For more information, please contact Greg Kunkle (kunkle@khlaw.com; 202.434.4178).

28.9% USF Contribution Factor

The FCC’s Office of Managing Director announced that the proposed universal service contribution factor for the fourth quarter of 2022 will be 28.9%, absent action from the Commission.  The 28.9% assessment on end-user interstate and international telecom service revenues is projected to meet the fourth quarter’s requirement of $1.914 billion for the four original universal service programs (E-Rate, rural health care, high-cost, and Lifeline) and the Connected Care Pilot Program.  For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186).

900 MHz Applications Granted

Last week, the Wireless Telecommunications Bureau issued a Public Notice granting five 900 MHz broadband segment license applications (Vol. XIX, Issue 34).  The FCC realigned the 900 MHz band in May 2020 to make available six megahertz of low-band spectrum for the development of critical wireless broadband technologies and services, while reserving four megahertz of spectrum for continued narrowband operations.  The Commission granted five applications of PDV Spectrum Holding Co. LLC for markets in Kansas and Missouri and has received full anti-windfall payments for the licenses.  For more information, please contact Greg Kunkle (kunkle@khlaw.com; 202.434.4178) or Wes Wright (wright@khlaw.com; 202.434.4239).