Level 3 to Pay Nearly $1 Million in Deal to Improve Rural Service

DENVER (AP) -- Colorado's Level 3 Communications (NYSE: LVLT  ) has agreed to pay nearly $1 million to federal regulators under an agreement aimed at improving the reliability of its telephone service in rural areas.

The deal announced by the Federal Communications Commission on Tuesday ended an investigation into the Broomfield company and established tougher standards for its rural service.

The FCC said Level 3 would voluntarily pay $975,000. And if it misses quarterly benchmarks, it would pay another $1 million.

The benchmarks require that Level 3 get its call completion rate in rural areas to within 5 percent of the rate in urban areas. It also must tell the FCC about how its intermediate providers are performing and help in any investigations of those carriers.

The chief of the FCC's enforcement division, Michele Ellison, said basic long distance service is failing at "alarming rates" in rural areas and praised Level 3 for tackling the problem.

"We are aggressively pursuing the problem wherever it leads, and there will be significant consequences for those companies that are not fulfilling their obligations to rural America," she said.

Level 3 said it has long supported having clear standards for all carriers to follow.

"Level 3 fully supports the Commission's mandate to improve telephone quality in rural America, and to root out those in the industry responsible for any substandard phone service," Level 3's general counsel for regulatory policy, Michael Mooney, said in a statement.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2310929, ~/Articles/ArticleHandler.aspx, 11/28/2014 6:16:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement