November 2019

Sponsor 

Communications and Technology Subcommittee

House Commerce Committee

Date 
Thu, 12/05/2019 - 16:00

Memorandum from Chairman Pallone to the Subcommittee on Communications and Technology

Witnesses

The Honorable Ajit Pai
Chairman
Federal Communications Commission

The Honorable Michael O'Rielly
Commissioner
Federal Communications Commission

The Honorable Brendan Carr
Commissioner
Federal Communications Commission



FCC Should Take Additional Action to Manage Fraud Risks in Its Program to Support Broadband Service in High-Cost Areas

GAO was asked to review funding reforms and fraud controls the Federal Communications Commission has implemented for rate-of-return carriers. This report examines the extent to which FCC: (1) has implemented funding reforms specific to rate-ofreturn carriers, and (2) is managing fraud risks for the high-cost program in accordance with leading practices. One of the reforms that GAO reviewed established a funding mechanism for the carriers whereby FCC determines the level of financial support to provide the carriers based on cost and revenue estimates produced by a model.