FCC Settles for $31M With TeleQuality for RHC Violations; Starks Seeks More Action
The FCC will take $31 million from TeleQuality Communications in repayments and forfeitures of USF payment claims to settle violations of competitive bidding and rate rules and for overbilling the rural healthcare program, the agency said Wednesday. Education Networks of…
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America acquired the company in 2018. The Enforcement Bureau consent decree requires TeleQuality designate a compliance officer and file regular compliance reports for five years: The company admitted to giving improper incentives to healthcare providers to encourage them to award contracts to TeleQuality. Commissioner Geoffrey Starks called this "one of the most egregious" violations of USF he can recall. He said the FCC should have taken stronger enforcement action because "the company will simply repay a portion of its ill-gotten gains. In cases of fraud on the Universal Service Fund, it is imperative that the fund be made whole." He suggested the company should be debarred from further RHC participation. "According to the FCC, there were activities from 2015-2017 that were in non-compliance with rules," a TeleQuality spokesperson emailed. "TeleQuality was acquired in January 2018. The new ownership and management ran an internal review and found non-compliance in procedures, which were proactively reported to the FCC. The matter has been settled with the FCC through a consent decree, and TeleQuality looks forward to providing excellent customer service under new ownership."