Verizon Wireless To Pay $1.25 Million To Settle Investigation Into Blocking of Consumers' Access To Certain Mobile Broadband Applications

The Federal Communications Commission’s Enforcement Bureau released a $1.25 million consent decree with Verizon Wireless that resolves an investigation into whether the company had fully complied with the FCC’s “C Block rules,” requiring licensees of C Block spectrum to allow customers to freely use the devices and applications of their choosing.

Verizon Wireless offers customers its 4G LTE service on C Block spectrum. Verizon Wireless bid at auction to acquire that spectrum, understanding that it was accompanied by open device and application obligations. Specifically, licensees offering service on C Block spectrum “shall not deny, limit, or restrict the ability of their customers to use the devices and applications of their choice on the licensee’s C Block network,” subject to narrow exceptions. Under the terms of today’s settlement, Verizon Wireless will make a voluntary payment to the Treasury in the amount of $1.25 million, and has committed to notifying the application store operator that it no longer objects to the availability of the tethering applications to C-Block network customers in the operator’s online market.

Verizon Wireless has also agreed to implement a compliance plan, requiring that:

• employees will receive training on compliance with the C Block rules;
• future communications with application store operators regarding the availability of applications to Verizon Wireless customers will be reviewed in advance by legal counsel; and
• Verizon will report any instances of noncompliance with the rule at issue that might occur during the two-year term of the plan.