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AT&T fined for school gouge

By Shaun Nichols, 28 Jul 2016

US watchdog the FCC has fined AT&T for overcharging on the internet service it provided to schools in Florida.

The Commission will take a $106,425 penalty from the telco after it was found to have violated laws limiting the fees it can charge for government-subsidized E-Rate service.

The E-Rate Program rules state that carriers that provide phone and internet service to schools and libraries must only bill a "lowest corresponding price," similar to what it charges commercial or residential services in that area.

AT&T was found to have flouted these rules by charging two Florida school districts inflated prices that were allegedly the highest of any in the entire state, and then collecting those fees from the government's Universal Service Fund. AT&T will need to pay back $63,760 from overcharges into the fund in addition to the $106k fine. ®

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