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FCC Rejects Sandwich Isles Bid to Reconsider Order Finding Improper USF Payments

The FCC denied a Sandwich Isles Communications request to reconsider a 2016 order saying the Hawaiian telco received $27.3 million in improper USF payments from 2002 to 2015, which it was ordered to repay (see 1612060032). Sandwich Isles petitioned for…

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reconsideration (see 1701050068) of "virtually all aspects" of the order, arguing the FCC ignored its legal arguments and factual submissions, "but in fact, the Commission painstakingly responded to those arguments and submissions and deemed them unpersuasive," said the unanimous agency order issued Thursday in docket 10-90. It was adopted Dec. 4; no commissioner statements were attached. "SIC fails to take account of the text of the [Communications] Act and the reasonable policies underlying the Commission’s universal service rules, which among other things preclude recovery for facilities that are not actually used to provide service in covered areas," said the new order. "While SIC points to evidence that it claims shows that its cost accounting did in fact comply with Commission rules, that evidence is either incomplete, unpersuasive, or else outright contradictory to other facts and claims made elsewhere by SIC." The commission remains committed "to service for customers on the Hawaiian Home Lands," the order added. "SIC still has ongoing obligations to its customers, under both the Communications Act and Commission rules, to continue to provide interstate telecommunications services. SIC may not discontinue service without our express authorization. Nor, however, may SIC ignore our accounting rules and universal service safeguards going forward." An SIC representative didn't comment.