FCC adopts proposed $21,691,499 fine of Network Services Solutions for violations of the USF Rural Health Care Program

By Doug Bonner

In the first major FCC enforcement proceeding involving its Rural Health Care Program, the FCC on November 4, 2016 adopted an NAL for nearly $22 Million against telecommunications reseller Network Services Solutions, which provided RHP services to Health Care Providers primarily in Mississippi and Texas.

The violations involve fabrication of documents, inflating rural rates, doctoring records to hide unfair non-competitive bidding practices, bribing a customer to sign, and submitting forged and false urban rates to increase payments from the Fund.  The violations appear to have been longstanding, from 2012 to date, and resulted in NSS receiving “millions of dollars” to which it was not entitled. 

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