AT&T Faces FCC Fine For Allegedly Overcharging Florida Schools While Receiving Government Subsidies

There are very few exceptions to the popular slogan "there is no such thing as bad press." One exception, however, includes a major telecommunication company overcharging school districts in violation of federal law while simultaneously receiving government subsidies.

The Federal Communications Commission (FCC) announced on Wednesday it will fine AT&T Inc. T $106,425 for charging two school districts in Florida the highest telecommunications rates in the state. The agency said that doing so is in violation of federal law and the FCC's "lowest corresponding price" rule, which ensures schools and libraries receive the best rates possible. Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

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The FCC also alleges AT&T charged the school districts prices "magnitudes higher" than many other customers in Florida. In fact, at least one of the school districts paid the highest price in all of Florida for one service.

The FCC also expects to be repaid $63,760 that AT&T apparently improperly received from the Universal Service Fund as a subsidy for the services it provided to the schools.

"Charging school districts among the highest rates in the state for telephone or broadband Internet service is outrageous," said Enforcement Bureau Chief Travis LeBlanc. "Schools and libraries across the country heavily rely upon federal and state funds to afford these critical services. We expect that every service provider will offer participating schools and libraries the same low rates that they charge to other similarly situated customers."