FCC investigates broadband providers over coverage claims
U.S. regulators are investigating whether broadband-service providers exaggerated their level of coverage to authorities preparing to distribute billions of dollars in subsidies.
The Federal Communications Commission has multiple investigations involving several service providers, an agency spokesperson told Bloomberg News. The agency declined to say which providers it is investigating.
At issue are claims by carriers that they already provide high-speed internet service to rural and other underserved areas where it’s not actually available. The Biden administration is awarding $42.5 billion to increase access in these locations. Areas served and unserved are being marked on a map compiled by the FCC.
State and local officials, consultants and federal lawmakers have accused wireless providers of overstating the breadth and quality of their service in their reports to regulators. Broad claims of coverage could block potential rivals from obtaining subsidies that would let them more aggressively compete with the established providers.
T-Mobile’s coverage claims have drawn attention from some state officials. The carrier, in reports to the FCC for the map, said its fixed wireless could serve 45 million addresses, or more than one-third of the 114 million places listed in the maps when they were revealed last fall. Verizon Communications said it could reach almost 19 million.
Low-income residents often paid more for worse service than their neighbors in higher-income areas, according to a new report.
FCC Chairwoman Jessica Rosenworcel revealed that there was an investigation in a Feb. 3 letter to members of Congress concerned about progress in the program.
“We have taken several steps to prevent systematic overreporting of coverage by broadband service providers,” Rosenworcel said in the letter. “Efforts to intentionally misstate service may be subject to enforcement action. In fact, we already have an investigation underway.”
Since then the agency has moved to multiple investigations, according to the spokesperson.
T-Mobile, Verizon and the CTIA wireless industry trade group didn’t immediately respond to a request for comment. NCTA-The Internet & Television Assn., which represents cable providers, declined to comment.
At issue is how to spread funding for the Broadband Equity, Access and Deployment Program, which was adopted by Congress in 2021 as part of a broader infrastructure package that President Biden said would “make high-speed internet affordable and available everywhere in America.”
