The FCC proposed an $806,861 fine against Globcom, a Northbrook, ...
The FCC proposed an $806,861 fine against Globcom, a Northbrook, Ill., long distance reseller, for not making Universal Service Fund (USF) and Telecom Relay Service (TRS) contributions. The Commission said Tues. that Globcom owed $700,000 to the USF as…
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of Aug. and hadn’t satisfied its obligation to contribute to the TRS Fund, which helps people with hearing or speech disabilities use the telephone system. The agency said Globcom apparently underreported its revenue to the Commission “and at times failed to report revenue information at all.” That information is used by the FCC to calculate carriers’ USF and TRS payments. The FCC Enforcement Bureau said this is the largest fine ever proposed for such violations and FCC Chmn. Powell said it’s “an important step in preserving the integrity of the Universal Service Fund by sending a signal to carriers who shirk their duty to pay their fair share.” The agency said it increased the normal level of fines because “it appears that Globcom deliberately chose not to pay its universal service contributions each month for revenues derived from January 1, 2001, to the present.” The Commission said that despite “numerous monthly communications” from the Universal Service Administrative Co. (USAC), Globcom had “done nothing to address this matter.” It also ordered Globcom to submit a report in 30 days outlining its plans for coming into compliance with the rules. Globcom can seek a reduction or cancellation of the fine in that 30-day period but the agency warned it wouldn’t take inability to pay as an excuse without federal tax returns, financial statements or other objective documentation.