FCC Fines Verizon For Failing To Investigate Rural Phone Problems

WheezyJoe writes Verizon agreed to a $5 million settlement after admitting that it failed to investigate whether its rural customers were able to receive long distance and wireless phone calls. The settlement is related to the FCC's efforts to address what is known as the rural call completion problem. Over an eight-month period during 2013, low call answer rates in 39 rural areas should have triggered an investigation, the FCC said. The FCC asked Verizon what steps it took, and Verizon said in April 2014 that it investigated or fixed problems in 13 of the 39 areas, but did nothing in the other 26.

"Rural call completion problems have significant and immediate public interest ramifications," the FCC said in its order on the Verizon settlement today. "They cause rural businesses to lose customers, impede medical professionals from reaching patients in rural areas, cut families off from their relatives, and create the potential for dangerous delays in public safety communications." Verizon has been accused of letting its copper landline network decay while it shifts its focus to fiber and cellular service. The FCC is working a plan to protect customers as old copper networks are retired.

Comments

So what next?

[misterthirsty]

Does Verizon feel that these fines obviate their responsibility to act? Is it cheaper to pay the fines than fix the problem?

Re:So what next?

[tnk1]

They are still required to act on it. There is usually an order to remedy the solution along with any fine. If they don't act they would face the same fines.

The real question is the second one you asked. If they can pay 5 mil a year and it costs 10 mil to fix the issues, then I'll take the fine every time.

If there was personal executive responsibility, then if I fail to execute the task, and then I get arrested for persisting... then 10 mil of Verizon's money is less important than staying out of jail. There is the other option that Verizon could be disqualified from things that give them the potential for much higher profits later. Otherwise, its all about the fines.

When someone doesn't pay their dues for our HOA, we don't just fine them or send them to collections. We revoke their visitor parking passes and their pool rights. We also slap liens on their property. Even that is usually not enough to get people to pay, but it may be enough to get them to increase the priority of who they pay first. Point being that there are things the FCC may or may not be able to do, but if they go to court they might be able to get other remedies.

Now, if the FCC does *not* have the ability to apply other remedies... then Verizon will just pay the bill and keep on keeping on.

Success!

[serviscope_minor]

So Verizon accepted a fine of $5,000,000. For Verizon, I call that a success. Given their size nothing at all is going to cost them less than 5 million. There is no way in hell that investigations into rural phone problems would have cost less.

This is just the cost of doing business, and it's certainly more profitable to break the law and pay the fine than it is to do what they are supposed to do.

Until the fines are set to a level to remove all profit and THEN put a punishment on top, large business will continue to flout the law because it's more profitable.

Re:copper lines going away like analog TV

[chesterw]

Eventually, perhaps. But read the headline again: "Rural Phone Areas." I live 9 miles from the nearest place I get cell reception. Copper is still the only viable option where I live. It ain't dead yet.