AT&T and SNET to Pay $10.9 Million for Overbilling Federal Lifeline Program

To resolve an investigation by the Federal Communications Commission's Enforcement Bureau, AT&T and its former subsidiary Southern New England Telephone (SNET) have agreed to pay $10.9 million in penalties for overbilling the FCC's Lifeline program. An FCC investigation showed that AT&T and its affiliates continued to provider service to landline customers in the program without recertifying the eligibility of the customers within the 35 days required by Lifeline program rules. As a result of those failures, the companies overbilled the Lifeline program when they requested reimbursement for participating in the program. The $10.9 million in penalties resulting from these settlements are in addition to the refund payments that the companies have previously made to fully reimburse the Lifeline program for ineligible customers. As part of the settlements, AT&T will pay a civil penalty of $6.9 million, and SNET will pay $4 million. In addition, AT&T and SNET are required to adopt rigorous compliance plans related to their Lifeline activities.