LINCOLN, Neb. (AP) — The Nebraska Supreme Court on Friday gave a national cellphone carrier a second chance to qualify as a provider of government-subsidized phone service for low-income residents.
The ruling came after the Nebraska Public Service Commission ordered the Telrite Corporation, doing business as Life Wireless, out of the programs in Nebraska.
The decision stemmed from a sign-up event for “free” cell phones in Omaha in July 2013 that was sponsored by the prepaid wireless carrier.
The Public Service Commission said last September that it had revoked the certification that allowed the company to participate in the Nebraska Telephone Assistance Program. The state program provides a monthly credit for phone service to low-income applicants; a similar federal program also requires that carriers be certified by state officials.
According to the ruling, a large crowd gathered for the promotion and applicants were forced to wait in the heat for long periods of time without shelter or water. The commission, which regulates telecommunications, was bombarded with questions and complaints after the event, many of which focused on why the event wasn’t more highly publicized.
The commission alleged that the company didn’t contact the state before starting operations in Nebraska, used the wrong enrollment form for the state of Nebraska and handed out flyers that failed to note that the commission had the final say over eligibility.
Life Wireless also violated the state’s eligibility-verification and application procedures when it handed out roughly 800 phones, according to the commission. Life Wireless officials later apologized and asked for a chance to make amends.
During an August 2013 hearing on the matter, company president Brian Lisle said his employees would not give away free phones in the future, but would take applications and mail them once the applications were approved. Commissioners raised concerns that the event could have allowed more than one person per household to receive a phone, in violation of federal rules.
In its ruling, the Nebraska Supreme Court said the punishment imposed by the commission was excessive, and it sent the case to the commission for further review.
The company “admitted that it made mistakes, but these initial administrative missteps occurred over the course of a single day and were immediately curtailed,” Justice William Connolly wrote. “Furthermore, these errors are easily remedied.”
Nichole Mulcahy, an attorney for the Public Service Commission, declined to comment.
In a statement, the company said: “Life Wireless is pleased with the court’s decision. We look forward to working with the PSC to bring affordable phone service to eligible low-income Nebraskans, helping them stay connected to loved ones, medical providers, employers and emergency services.”
