FCC to Fine AT&T $106K for Overcharging Florida Schools and E-rate Program

The Federal Communications Commission plans to fine AT&T $106,425 for charging two Florida school districts some of the highest telecommunications rates in the state, in apparent violation of federal law and the FCC’s “lowest corresponding price” rule. The lowest corresponding price rule helps ensure that schools and libraries that participate in the FCC’s E-rate Program get the best rates available by prohibiting E-rate service providers from charging them more than the lowest price paid by other similarly situated customers for similar telecommunications services. The Commission alleges that AT&T charged the school districts prices for telephone service that were magnitudes higher than many other customers in Florida. One or both school districts paid the highest price in all of Florida for one service, while other customers paid much less. In addition to the fine, the FCC plans to order AT&T to repay $63,760 it apparently improperly received from the Universal Service Fund as a subsidy for these services.

FCC Commissioner Ajit Pai dissented from the decision and released a statement saying, “I agree with my colleagues that AT&T may have violated that rule in Florida. But the Enforcement Bureau’s handling of the investigation has fatally compromised our ability to impose a lawful forfeiture upon the carrier. Here’s the problem: We have issued this Notice of Apparent Liability (NAL) too late.”