Industry Seeks Scrutiny of EBB Transfers

Industry groups want the FCC to investigate whether emergency broadband benefit providers or households receiving the monthly internet discount are abusing the program through benefit transfers. Some in recent interviews sought FCC guidance.

Some EBB providers “encountered situations where a customer transfers service to a second provider and then asks to re-enroll with the original provider or with a third provider within a short period of time,” NCTA told Wireline Bureau and Office of Economics and Analytics staff, per a filing posted Thursday in docket 20-445: It “may be a sign of fraud or abuse.” The group recommended “limiting EBB recipients to one benefit provider change per month.” It declined to comment further Friday.

Concerns about the potential misuse by participating providers have also been raised in recent weeks. ACA Connects warned Wireline Bureau staff in September that a growing number of providers were transferring households' service at the end of each month to claim those households' benefits despite not having served them throughout the month.

NTCA has heard some similar concerns from its members about the “timing and reconciliation” of benefit transfers, emailed Senior Vice President-Industry Affairs Mike Romano. NTCA would “support some additional investigation, clarity, and relief along the lines of what NCTA and ACA suggest” from the FCC by reviewing Universal Service Administrative Co. records and “considering whether a more robust process for transfers with better thought given to the timing,” Romano said.

The FCC declined to comment on NCTA and ACA's filings. “We do take any accusation of wrongdoing or abuse in any of our programs very seriously, especially those involving consumers,” emailed a spokesperson Friday. Acting Chairwoman Jessica Rosenworcel told reporters in September the agency was reviewing the issue (see 2109300069).

The issues suggest providers “may not be getting adequate informed consent from the customer to do these transfers,” instead of consumer abuse, said ACA Vice President-Regulatory Affairs Brian Hurley. It's “increasing month over month” and “our suspicion is … that it’s likely to be more widespread.” Hurley said the FCC was “very engaged” and “seemed interested in investigating the matter further” when ACA met with staff last month.

Customers are often unaware of the transfer when ACA members contact them after their benefits were transferred, Hurley said. In one case, a benefit transfer occurred 16 times before the household could continue using it. There “could be confusion” about how the benefit works because the FCC didn’t “spend the money to properly publicize this,” said Internet Innovation Alliance co-Chairwoman Kim Keenan: “We haven’t spent enough of the money for it to be a significant problem.”

It’s “important for the FCC to look into both of these concerns,” but “we just don’t have any reason to conclude that it’s abuse until we have more facts,” said Free Press General Counsel Matt Wood. ACA’s concerns “sound a little more serious,” he said. Some consumers may have to switch services several times a month, Wood said, and “I don’t think NCTA can allege that it’s necessarily abusive.”