Alabama Company Files Lawsuit Against Verizon, Comcast, and Others Over $214M Unpaid 911 Fee

by Istvan Fekete on August 14, 2015

Phone Recovery Systems has filed a lawsuit claiming Comcast, Verizon, and other phone companies have failed to pay the state $214 million in fees to support the 911 system.

As the Boston Globe reports, this isn’t the first lawsuit Phone Recovery Systems, who recently signed agreements to help several Pennsylvania counties pursue 911 fees, has filed against telecom companies in various states.

In the freshly filed Massachusetts lawsuit, Phone Recovery Systems says landline service providers reduced their 911 fees and are not paying enough to support the system. On the other hand, the companies involved say the lawsuit is meritless and asked the court for dismissal.

It’s important to note that most states rely on the monthly fees collected by telephone service providers from their customers to pay for the 911 system. In Massachusetts, fees were recently raised from $0.75 to $1.25 per customer, due to the upgrade process.

The lawsuit notes that more fees were collected from 2.9 million landline numbers in 2013, but there are now 7 million more in use in the state. Phone Recovery Systems President Roger Schneider said the phone companies are lowballing 911 fees because of technological advances that allow the companies to have a single copper phone line to support up to 23 landline numbers at once. Yet they are collecting a single 911 fee.

Interestingly, wireless carriers aren’t targeted by the lawsuit. Earlier this year, Philadelphia suburb Delaware County filed a lawsuit against 19 Pennsylvania telecom providers for $41.4 million in 911 fees.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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