AT&T Settles ACP Investigation for $2.3 Million

WASHINGTON, Oct. 28, 2024 – AT&T agreed to pay a $2.3 million fine to end a federal investigation into fraudulent broadband subsidy claims.

The Federal Communications Commission said in a consent decree Friday that the company recycled qualifying subscriber information to improperly enroll more than 3,900 other customers in the Affordable Connectivity Program and a predecessor subsidy, in addition to collecting two months of reimbursement payments for more than 3,200 subscribers who were no longer using their service.

AT&T admitted the FCC’s allegations were accurate as part of the agreement, but didn’t admit any intentional wrongdoing.

The company agreed to pay back $378,922 in EBB and ACP payments, plus more than $1.9 million in civil penalties. The company also agreed to a compliance training and monitoring program in the event ACP is refunded or another low-income broadband subsidy is created.

The Emergency Broadband Benefit program was stood up in late 2020 as a pandemic response with a $3.2 billion appropriation. The next year Congress appropriated $14 billion for the ACP as a successor, all of which ran dry in April. EBB provided up to $50 per month toward low-income households’ internet bills, and the ACP provided $30 per month.