WASHINGTON (Reuters) – Verizon Communications Inc (VZ.N) and its Straight Path Communications unit paid a $614 million civil penalty as part of a January 2017 settlement with the U.S. Federal Communications Commission, the agency said on Wednesday.
The telecommunications regulator said the settlement resolved an investigation into allegations that Straight Path failed to use the spectrum it was awarded, and in doing so violated the FCC’s rules in connection with approximately 1,000 licenses.
The settlement required Straight Path to sell its licenses and remit 20 percent of the overall proceeds. Verizon said on Wednesday it had completed its $3.1 billion acquisition of the company it announced in May 2017. The settlement represents the largest ever civil penalty paid to resolve an FCC investigation.
Reporting by David Shepardson; editing by Grant McCool