FCC seeks $62 million from wireless provider Q Link over allegations of excessive refunds

Jan. 17 (UPI) — The Federal Communications Commission has proposed a $62 million fine to Florida-based wireless carrier Q Link Wireless for violating the terms of a federal program designed to make Internet access more accessible to consumers.

The FCC said Q Link used the emergency broadband allowance program to seek excessive reimbursement for claims it filed. An order released by the FCC on Tuesday claims Q Link received more than $20 million from the program it shouldn’t have received.

The refunds were related to Q Link claims between 2021 and 2022.

“For these reasons, and in light of the extent, duration, and severity of Q Link’s apparent violations and the need to promote compliance, we propose a penalty detailed in this Notice of Apparent Forfeiture Liability and Order,” the order reads. said.

Congress established the Broadband Program in December 2020 with $3.2 billion in funding that will be used to support discounts on internet-connected devices for low-income households. This includes households experiencing hardships related to the COVID-19 pandemic.

Florida-based Q Link Wireless allegedly received a refund in excess of the market value of the devices it supplied to customers under the EBB program.

One device in particular, the Scepter 8 manufactured by Hot Pepper Inc., is an 8-inch tablet running Android 11 operating system. Whether Q Link indicates the market value of the device.

When the FCC Enforcement Bureau launched an investigation into Q Link, the company refused to cooperate.

The bureau then looked for devices with similar RAM and ROM specifications, as well as devices with similar screens and processors, as these are major factors influencing computing device prices. The most similar devices were Hyundai HyTab 7WCI and Amazon Fire 7.

Both of these devices had a market value of $50 to $65 per month, which the bureau used to determine that the cost of the Scepter 8 was around $50 since it was not a proprietary device.

Based on an analysis and review of Q Link’s claims, the FCC found that the company was seeking funding in excess of the value of the products it supplied.

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