The FCC proposed a $75,000 fine against US South for apparently failing to cooperate with verification functions performed by the Universal Service Administrative Company (USAC) on behalf of the Commission. The USAC handles the collection and disbursement of Universal Service Fund payments to providers. In turn, the USAC relies on telecom providers to accurately determine their contribution responsibilities.
To ensure the information submitted to USAC by service providers is complete, timely, and accurate, the Commission’s rules grant USAC the authority to verify the information and require providers to maintain records to allow verification. Service providers are also required to submit those records to USAC and the FCC upon demand.
In this case, the FCC says US South Communications apparently failed several times in 2018 and 2019 to respond to directives from USAC to provide records that justify financial and other information. That’s why the Enforcement Bureau proposed the fine in a Notice of Apparent Liability for Forfeiture.
The company has 30 days to respond. It can either pay the full amount or seek to have the fine reduced or cancelled.