FCC Settles Rural Health Care Program Rule Violations with Windstream

The Federal Communications Commission’s Enforcement Bureau achieved a settlement with Windstream Communications to resolve its investigation into the company’s practices for determining rural rates and retention of Rural Health Care Program (RHC) documents. To resolve this matter, Windstream will pay a settlement amount of $1,204,445.24, which includes a $200,000 civil penalty, and implement enhanced compliance measures in connection with its participation in the RHC Program. The Enforcement Bureau’s Fraud Division investigation found that Windstream failed to use any of the three rate-setting methods available to service providers under FCC rules, instead opting to use its own methods to prepare bids and seek Universal Service Fund (USF) support. Windstream was not able to provide the FCC with sufficient documents to demonstrate the processes used to set its rural rates. Through its investigation, the Bureau determined that Windstream received over $1 million in improper payments from the USF related to rural rate violations in connection with services provided in Funding Year 2017 through Funding Year 2020. The company will now repay that entire amount to the Universal Service Fund.