Windstream will pay a $1.2 million settlement to the Federal Communications Commission (FCC) as a result of failing to comply with the agency's Rural Health Care (RHC) program rules.
An FCC Enforcement Bureau investigation found Windstream received over $1 million in improper payments, between Funding Years 2017 and 2020, from FCC’s Universal Service Fund (USF). Windstream must now repay that entire amount to the USF, including a $200,000 civil penalty.
The RHC program, paid for through USF, helps provide broadband services to eligible rural healthcare providers. Participating providers must offer services no higher than at a state's “urban rate,” which is the highest publicly available rate a provider can charge for similar services to a city with over a 50,000 population. Operators are entitled to receive USF payments to make up the difference between the urban and rural rate.
Windstream employed its own methods to prepare bids and seek USF support, according to the FCC, rather than using any of the agency’s three rate-setting methods. The operator was unable to provide the FCC with documents to sufficiently describe how it determined rural rates for the RHC program.
Loyaan A. Egal, acting FCC Enforcement Bureau chief, said in a statement the Bureau “vigorously pursues violations of the Commission’s RHC rules to ensure that funds designated for rural areas and health care providers are available to program participants with no entity receiving an improper or disproportionate share.”
In addition to paying the fine, Windstream must also implement enhanced compliance measures in connection with its participation in the RHC program.
“We are pleased that this matter has concluded and look forward to continuing to serve our customers who participate in USAC’s Rural Health Care programs,” a Windstream representative told Fierce.
Broadband providers and public interest groups have urged the FCC to reform USF’s contribution mechanism, to ensure participating operators are paying more equitable fees and reduce regulatory uncertainty.