eRate regulations, however, require that the lowest corresponding price be more than just publicly known; that price must be provided to schools and libraries in the program. Phone companies “shall not charge” schools or libraries “a price above the lowest corresponding price,” the regulations state. (There is an exception for a rate so low that the company loses money, but the FCC must sign off on this exception. An agency spokesman, asked about any such cases, did not provide an example.)
Wisconsin Bell is seeking dismissal of the lawsuit on various grounds. One is that the FCC has, in essence, neglected its duty to train phone companies on how to determine the preferential rate. The agency, according to a Wisconsin Bell court filing, has “yet to provide authoritative benchmarks with respect to application of the lowest corresponding price requirement.”
The AT&T spokesman declined to discuss the Heath case but said the company “has worked diligently with industry to seek additional FCC clarifications of these rules where appropriate.”
Heath’s suit continues.
Regulatory filings with the New York State Public Service Commission paint a similar picture, but with Verizon. From 2005 to 2011, in the eRate program, Verizon charged far more to the Bronxville, N.Y., school district for ISDN/PRI and plain old telephone services than what was available under the state-negotiated rate. For example, according to the filings, the state rate for PRI since 2008 has been $275 per month, but Bronxville has been charged more than twice that: $611 per month.
Verizon originally contested the claim using a strategy similar to one AT&T deployed in Wisconsin: putting the onus on the school. In a filing last summer, Verizon said that the state master contract “process requires customers to submit a request to receive the discount,” and there is no evidence that the Bronxville school district “requested” the state rate for telephone service.
eRate regulations, however, prohibit phone companies from charging more than the lowest corresponding price.
Verizon and Bronxville recently settled the case, according to Rotto, the consultant, who worked with Bronxville on the matter. The terms of the settlement are confidential.
While declining to discuss specific disputes, Verizon spokesman McFadden said the company “is committed to resolving any such disputes fairly.”
“If we make a mistake,” he added, “it is our goal to fix it.”
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