FCC Adopts Settlement Agreement with Windstream on RHC Issues

On April 5, 2022, the Enforcement Bureau (EB) released an Order adopting a Consent Decree resolving its investigation into whether Windstream Communications, LLC (Windstream) violated the Commission’s Rural Health Care (RHC) Program rules.

EB found that Windstream failed to utilize Methods 1, 2, or 3 when setting rates. Instead, Windstream stated that it “prepares competitive bids that are designed to offer the best available prices to customers participating in the RHC Program. To achieve this objective, Sales representatives and the Pricing team utilize processes designed to identify competitive rates available in a particular customer’s region and rely on those rates when preparing bids and seeking USF support.” However, Windstream could not provide documentation to sufficiently demonstrate the processes it used.

This investigation covered Funding Years 2017-2020 and revealed that Windstream received $1,004,445.24 in payments from the Universal Service Fund (USF) related to rural rate violations in connection with services provided during that time. Windstream agreed to a settlement of $1,204,445.24 which included: (a) repayment of $1,004,445.24 to the USF and (b) a civil penalty of $200,000 paid to the United States Treasury. Windstream also agreed to implement enhanced compliance measures in connection with its participation in the RHC Program.