AT&T improperly obtained money from a government-run broadband discount program by submitting duplicate requests and by claiming subsidies for thousands of subscribers who weren’t using AT&T’s service. AT&T obtained funding based on false certifications it made under penalty of perjury.
AT&T on Friday agreed to pay $2.3 million in a consent decree with the Federal Communications Commission’s Enforcement Bureau. That includes a civil penalty of $1,921,068 and a repayment of $378,922 to the US Treasury.
The settlement fully resolves the FCC investigation into AT&T’s apparent violations, the consent decree said. “AT&T admits for the purpose of this Consent Decree and for Commission civil enforcement purposes” that the findings described by the FCC “contain a true and accurate description of the facts underlying the Investigation,” the document said.
In addition to the civil penalty and repayment, AT&T agreed to a compliance plan designed to prevent further violations. AT&T last week reported quarterly revenue of $30.2 billion.
AT&T made the excessive reimbursement claims to the Emergency Broadband Benefit Program (EBB), which the US formed in response to the COVID-19 pandemic, and to the EBB’s successor program, the Affordable Connectivity Program (ACP). The FCC said its rules “are vital to protecting these Programs and their resources from waste, fraud, and abuse.”
AT&T praises itself for using federal program
We contacted AT&T today and asked for an explanation of what caused the violations. Instead, AT&T provided Ars with a statement that praised itself for participating in the federal discount programs.
“When the federal government acted during the COVID-19 pandemic to stand up the Emergency Broadband Benefit program, and then the Affordable Connectivity Program, we quickly implemented both programs to provide more low-cost Internet options for our customers. We take compliance with federal programs like these seriously and appreciate the collaboration with the FCC to reach a solution on this matter,” AT&T said.
The EBB provided monthly subsidies of $50 for eligible households, while the ACP offered $30 a month. Telecoms provided the discounts to subscribers directly and sought reimbursement from the programs. The ACP ended a few months ago after Congress did not provide additional funding.
