FCC fined Verizon $5M tied to failed investigations covering 26 rural areas
Verizon Communications is set to pay a $5 million fine to the Federal Communications Commission to settle claims that the telecom operator did not investigate call completion failures across 26 rural areas.
The issues happened over several months in 2013, in which low call completion rates coming from long distance or wireless calls to landline phones in the impacted areas were found. For failing to properly investigate the issue, the FCC’s Enforcement Bureau and Verizon have agreed to the $5 million fine, which includes $2 million in an actual fine and $3 million committed over the next three years toward improving call completion rates in rural areas.
The FCC noted that the Verizon case was the fourth “major resolution” connected to rural call completion investigations. Past issues were tagged to Matrix Telecom and Windstream in 2014, and to Level 3 in 2013.
“All Americans, no matter where they are located, have a right to make and receive phone calls,” said Travis LeBlanc, chief of the FCC’s Enforcement Bureau. “Phone companies are on notice that the FCC will hold them accountable for failures to investigate and ensure that calls go through to the rural heartland of the country.”
In other wireless carrier news:
• T-Mobile US launched a new device promotion dubbed Score, which allows customers to pay $5 extra per month for the ability to upgrade for no additional charge to a new entry-level smartphone after six months, or reduced rates on higher-end devices after 12 months.
The six-month upgrade offer currently includes a postpaid or prepaid version of the Alcatel OneTouch Evolve 2 device, which customers can receive for free after paying the $5 fee for six months. After one year of paying the fee, customers can pick up a Alcatel OneTouch Fierce 2, LG Optimus L90 or T-Mobile Concord II for free; a Google Nexus 6 at a $100 discount; a Samsung Galaxy S5 at a $110 discount; or a Samsung Galaxy Note 4 at a $150 discount.
The program is similar to the carrier’s JUMP program that launched in mid-2013, which for a $10 fee per month allows customers upgrade their device at any time on a new model for up to half the cost of the new device. JUMP also includes an insurance policy covering the current phone for damage.
• Sprint’s Boost Mobile division is set to launch a new rate plan that offers unlimited domestic voice calling, text messaging and 2.5 gigabytes of unthrottled data for $35 per month. The Data Boost plan, which will be available beginning Feb. 3, requires customers to sign up for the carrier’s Auto Re-Boost payment option.
The new option joins the initial Data Boost plans that launched last September, which for $35 per month offer just 1 GB of unthrottled data, but does not require enrollment in the auto-pay service.
Sprint recently rolled out a new rate plan for its Virgin Mobile USA brand tied to distribution through Wal-Mart stores that includes both single- and multiline plans with shared data. The single-line plans include unlimited text messaging, 300 domestic calling minutes and 2.5 gigabytes of unthrottled data for $35 per month; or unlimited text messaging, domestic calling and 2.5 GB of unthrottled data for $45 per month. The multiline plans begin at $65 per month for two lines sharing unlimited voice calling, text messaging and 4 GB of data. An additional $25 per month allows for another line and 4 GB of extra shared data up to a total of four lines per account.
Additional carrier news can be found on the RCR Wireless News “Carriers” page.
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