FCC Proposes $284,250 Fine for Failure to Pay USF

On May 6, 2010, the FCC issued a Notice of Apparent Liability to NTS Communications, Inc. for failure to pay universal service contributions. The NAL is the second large fine for failure to pay USF proposed in a little over a month.

The NAL follows the Commissions prior practice of assessing USF fines at $20,000 per month for failures to pay USF invoices and $10,000 per month for partial payments of USF invoices. Both fines are subject to an upward adjustment equal to one-half of the amount of USF that was unpaid.

For example, in the NTS case, the Commission concludes that NTS failed to pay two invoices ($40,000 total), made only partial payments on twelve occasions ($120,000) and assessed an upward adjustment of $124,250 representing approximately one-half of the highest amount of unpaid USF.