FCC Proposes $18.7 Million Fine Against DataConnex

The Federal Communications Commission proposed an $18,715,405 fine against DataConnex for apparent violations involving the Universal Service Fund Rural Health Care Program. The Florida- and Mississippi-based telecommunications services provider is charged with violating the Communications Act, the program’s competitive bidding rules, and using forged, false, misleading, and unsubstantiated documents to improperly seek funding from the Universal Service Fund (USF). DataConnex’s apparent financial relationship with a consultant hired by rural health care providers to help select a service provider undermined the competitive bidding process. DataConnex also apparently provided false and misleading information to unlawfully increase the USF funding it received.