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AMOV - America Movil SAB De CV News Story

$14.77 -0.0  -0.1%

Last Trade - 14/05/21

Sector
Telecoms
Size
Large Cap
Market Cap £34.74bn
Enterprise Value £59.15bn
Revenue £36.26bn
Position in Universe 256th / 6846

UPDATE 1-FCC proposes to fine TracFone Wireless $6 million for subsidy violations

Thu 2nd April, 2020 11:56pm
(Adds TracFone comment, FCC Chairman comment, background)
    WASHINGTON, April 2 (Reuters) - The Federal Communications
Commission on Thursday proposed to fine TracFone Wireless $6
million for allegedly violating its rules governing the subsidy
program for telecommunications services for low income users.
    The FCC said TracFone apparently claimed federal funding for
customers "who were not actually determined to be eligible for
the program."
    The Lifeline program provides a monthly discount of up to
$9.25 on broadband and phone service for qualifying low-income
consumers.
    TracFone, a unit of America Movil  AMXL.MX , said it would
respond "at the appropriate time. As the leading provider of
Lifeline services, we take seriously our stewardship of public
dollars and will continue to focus on connecting millions of
low-income customers to school, jobs, healthcare, and essential
social services."
    The FCC investigation found that in 2018, TracFone
apparently obtained federal support for hundreds of ineligible
subscribers in Florida, including using "different addresses
using the same name, all seven of whom had birth dates in July
1978 and shared the same last four Social Security Number
digits."
    FCC chairman Ajit Pai said "we will not sit idly by and let
Lifeline carriers fabricate enrollment data to generate more
sales." Lifeline is funded using Universal Service Fund money
that comes from fees assessed on phone bills.
    Spending for the Lifeline program has fallen dramatically in
recent years. It handed out $981 million in subsidies in 2019
down from $1.3 billion in 2017.

 (Reporting by David Shepardson; additional reporting by Julia
Love in Mexico City; Editing by Chris Reese and Daniel Wallis)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))
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