Verizon's victory in court headlines this week's round-up of news covering telecoms and the government:
Verizon suit thrown out
On occasion, the federal government will turn to members of the telecom industry for assistance in certain matters, including, in some instances, assisting in criminal investigations and surveillance operations. While telcos are allowed to bill agencies for their services, any fraudulent activity will be persecuted. Verizon Communications faced such a possibility when employee and purported whistleblower Stephen Shea sued the company under the False Claims Act for a second time in 2009.
The U.S. Court of Appeals for the D.C. Circuit recently threw out the case, however, stating that it violated the FCA's first-to-rule act. The legislation states that suits cannot be filed under the FCA if they recycle information presented from an earlier case. Shea had initially filed a suit against Verizon in 2007. According to The Litigation Daily, Verizon paid out a $93.5 million settlement in that first case.
TIA comments on ITC policies
The Telecommunications Industry Association recently submitted a formal response to an ongoing investigation conducted by the U.S. International Trade Commission. The ITC is looking into the possibility that the Indian Government has enacted industrial policies that give undue favor to domestic entities by discriminating against U.S. imports and investments. In particular, the ITC is investigating what effect such practices would have on the U.S. economy overall.
"The telecommunications sector is an important contributor to India's continued economic growth and job creation through both domestic and export-oriented economic activities," TIA stated. "However, it must be noted that in order for India to enhance its competitiveness in the global ICT sector and to further encourage investment, the Government of India should continue a policy approach that is pro-competition and pro-growth, and not embrace policies that rely on protectionism."
Telecoms accused of fraud
Multiple telco owners have been accused of defrauding the Lifeline program, potentially bilking the government out of more than $32 million. Lifeline was established decades ago to ensure that low-income households could still receive phone service through discounted rates. Carriers play a major part in the process, screening applicants and providing discounts before being repaid by the Universal Service Fund.
According to the Tampa Bay Times, three individuals representing five phone companies – American Dial Tone, Bellerud Communications, BLC Management, LifeConnex Telecom and Triarch Marketing – were indicted by a grand jury for allegedly providing inaccurate figures regarding the number of customers who received Lifeline assistance. The unsealed indictment states that those companies received more than $46 million from the program – $32.4 million of which the government wants returned.
Colo. lawmakers look to boost broadband
Colorado's state legislature recently passed a series of bills that could pave the way to increase funding to expand the access of high-speed Internet to rural communities. The Durango Herald reported that lawmakers have spent four years trying to reform Colorado's legislation covering these matters, but repeatedly ran into resistance from certain segments of the state's telecom industry.
Local phone companies are currently able to charge higher rates to customers who reside in rural, secluded or otherwise hard-to-reach areas. By enhancing the quality of network infrastructure in these communities, the Colorado government could be cutting into a potential revenue stream for these organizations.
The bills passed through the House with little trouble, according to the news outlet, and now will be considered in the Senate. Early reports indicate that they will likely pass unimpeded as well. Supporters of the legislation believe that it can help the state improve a variety of services and local industries across Colorado.
"We will be able to connect our schools," said Rep. Angela Williams. "We will be able to connect our hospitals for telehealth. We will be able to connect our business owners in rural areas."
