FCC Fines Prepaid Carrier $493,327 for Non-Compliance with 214 Licensing and Federal Fund Programs


The Federal Communications Commission (“FCC”) plans to fine PTT Phone Cards, Inc., a Philadelphia, PA prepaid calling company, $493,327 for allegedly providing international telecommunications services without FCC authority and disregarding virtually all of its regulatory obligations for over three years.  The FCC found that PTT apparently failed to certify that the company had protected customers’ proprietary network information and failed to contribute to the Telecommunications Relay Service (TRS) Fund, a government fund designed to help people with hearing and speech disabilities make phone calls.

A copy of the FCC’s Notice of Apparent Liability detailing the basis for the proposed forfeitures associated with each discrete alleged rule violation is available here:  PTT Phone Cards NAL.

PTT operated under the trade name “Star Pinless” as a prepaid calling card service provider reselling international telecommunications services between 2010 and 2014. The FCC found that, during that time period, PTT allegedly provided these services without certifying that the company had protected customers’ proprietary network information or obtaining Commission authority to provide international telecommunications services, which prevented the Commission from evaluating whether PTT’s services would create risks to consumers and competition. PTT also apparently failed to file the annual reports that determine the amounts service providers owe to support TRS and for other regulatory payments. The filing failures persisted for over three years and resulted in either PTT’s late payment or non-payment of required fund contributions and regulatory fees. PTT’s apparent failure to comply with its regulatory obligations undermined the Commission’s ability to monitor compliance with its various funds and customer privacy rules, and with developments in the international telecommunications market.

If you have questions or concerns regarding this Advisory, please contact your assigned Attorney or Jonathan Marashlian at jsm@commlawgroup.com.

ATTORNEY ADVERTISING DISCLAIMER: This information may be considered advertising in some jurisdictions under the applicable law and ethical rules. The determination of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely upon advertisements or self-proclaimed expertise. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers

Sign Up To Receive Our
Advisories and Compliance Alerts

Sign up for our email list to receive notifications regarding new advisories and news